[Openspace] test on remaining autocorrelation

[Roger Bivand]

On 28 Apr 2006, V.A. Ceccato wrote:

> Hi List
> 
> How do you test for remaining autocorrelation in the Lag model?
> 
> My spatial diagnostics of OLS model showed clear indication of 
> autocorrelation on residuals, so I apllied the lag model to try to get rid 
> of this problem. However, regardless what I do to the model, The Likelihood 
> Ratio Test comes always up as significant. In the GeoDa Workbook, page 209, 
> it says "The (second) test is an alternative to the asymptotic significance 
> test on the spatial autoregressive coefficient, it is NOT a test on 
> remaining spatial autocorrelation."
> 
> So, how do we know whether or not the problem of autocorrelation was solved?

This is most likely an indication of mis-specification, possibly an 
omitted RHS variable, or a functional form issue, or both. There is still 
information in the error that could be retrieved. What does a Common 
Factor test of the lag model including the lagged RHS variables against 
the error model tell you?

Roger

> 
> Thank you
> 
> Vania Ceccato Ps. The test on remaining autocorrelation was available in 
> SpaceStat, why is it gone in GeoDa?
> 
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-- 
Roger Bivand
Economic Geography Section, Department of Economics, Norwegian School of
Economics and Business Administration, Helleveien 30, N-5045 Bergen,
Norway. voice: +47 55 95 93 55; fax +47 55 95 95 43
e-mail: Roger.Bivand at nhh.no