Testing Panel Data Regression Models with Spatial Error Correlation



Power                                                                            Power                                                                            Power                                                                            Power


Weight is Rook ρ =0.0


Weight is Rook ρ =0.2


Weight is Rook ρ =0.5


Weight is Rook ρ =0.8


Figure 1D

Tests for λ =0

Frequency of Rejections in 2000 Replications
Marginal Tests and Conditional Tests
N=49, T=7

Weight is Queen ρ =0.0


Weight is Queen ρ =0.2


Weight is Queen ρ =0.5


Weight is Queen ρ =0.8




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