A SUGGESTED TEST FOR SPATIAL AUTOCORRELATION AND OR HETEROSKEDASTICITY AND CORRESPONDING MONTE-CARLO RESULTS/

We suggest a new specification test for detecting whether or not the e rror terms of a spatial regression model area spatially correlated and /or heteroskedastic. Among other things, our test can be viewed as a t est of the model's specifications. Our test does not assume that the r egression model is linear or that the error terms are normally distrib uted. Monte Carlo results are given which suggest that our test should be a useful one. These Monte Carlo results are described in both tabl e and response function form. (C) 1998 Elsevier Science B.V. All right s reserved.