283 - Explain how spatial dependence and spatial heterogeneity violate the Gauss-Markov assumptions of regression used in traditional econometrics

Explain how spatial dependence and spatial heterogeneity violate the Gauss-Markov assumptions of regression used in traditional econometrics

Concepts

  • [AM9-1] Principles of spatial econometrics
    Spatial econometrics uses spatial stochastic models to determine autocorrelation between interacting agents. The techniques involved are regression, the use of a spatial weights matrix, least squares, etc.