Baltagi, Badi; Li, Dong - In: Econometric Reviews 20 (2001) 1, pp. 31-40
This paper derives two simple artificial Double Length Regressions (DLR) to test for spatial dependence. The first DLR tests for spatial lag dependence while the second DLR tests for spatial error dependence. Both artificial regressions utilize only least squares residuals of the restricted...