In this research, the omitted variable problem in a spatial autoregressive model is analyzed by simulation. We examine the performances of estimators when an omitted variable is correlated with explanatory variables. In the literature, theoretical aspects of estimating spatial autoregressive...

Empirical analyses on urban/regional amenity began in the 1980s. These economic researches measured the “quality of life index” (QOLI) of cities and regions. The endogenous variables, rent, wage and population, were explained by social and economical attributes as well as some amenity...

In spatial autoregressive models, spatial autocorrelations in the dependent (or omitted) variable are modeled. Dependency is measured under known spatial structures, typically represented as a spatial weight matrix (W). For ordinal spatial autoregressive models, a unique W exists, and the...