The Effect Of Omitted Spatial Effects And Social Dependence In The Modelling Of Household Expenditure For Fruits And Vegetables

Author: Guanpeng Dong, Richard Harris, Edyta Łaszkiewicz
Publisher: Walter de Gruyter GmbH

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We find the omitted elements of the external environment affect negatively the estimates for other spatial (social) effect parameters. Especially, we notice the overestimation of the random effect variance when the social dependence is omitted and the overestimation of the social interaction effect when the spatial heterogeneity is ignored

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