We propose a random effects panel data model with both spatially correlated error components and spatially lagged dependent variables. We focus on diagnostic testing procedures and derive Lagrange multiplier (LM) test statistics for a variety of hypotheses within this model. We first construct...

To be able to redress retrospective panels into random samples and correct for any recall and/or design bias the data might suffer from, this paper builds on the methodology proposed by Langot and Yassin (2015) and extends it to correct the data on the individual transaction level (i.e. micro...