Journal Article

Spatial autocorrelation or model misspecification? The help from RESET and the curse of small samples

Letters in Spatial and Resource Sciences, 2(1): 53–59

In regression analysis,model misspecification can produce spurious spatial correlation in the residuals. By means of Monte Carlo simulations, I show that the RESET test can help to disentangle this conundrum in large samples. Small samples can pose a serious challenge to finding the correct model.


Andrea Vaona


Publication Date
JEL Classification
R12, C12, C15, R15, C21