Baltagi, Badi H.; Liu, Long - Center for Policy Research, Maxwell School - 2008
This paper derives a joint Lagrande Multiplier (LM) test which simultaneously tests for the absence of spatial lag … standard LM statistics. The first one tests for the absence of spatial lag dependence ignoring the random individual effects …, and the second one tests for the absence of random individual effects ignoring the spatial lag dependence. This paper also …