Download or read book Three Essays on the Spatial Autoregressive Model in Spatial Econometric written by Qu, Xi and published by . This book was released on 2013 with total page 158 pages. Available in PDF, EPUB and Kindle. Book excerpt: Chapter Two focuses on three classical tests, namely, Wald, LM, and LR, of spatial interactions in the simultaneous SAR Tobit model. We derive the asymptotic distributions of those three tests under both the null and the local alternative hypotheses, establish their asymptotic equivalence and local efficiency, and study finite sample properties using the Monte Carlo simulation. The tests are applied to an empirical example involving the school district income tax in Iowa in 2009. Among 361 school districts, 18.3 percent had rates of zero, so it fits the Tobit setting. Testing results indicate the existence of tax competition among neighboring school districts.