INFERENCE BASED ON ALTERNATIVE BOOTSTRAPPING METHODS IN SPATIAL MODELS WITH AN APPLICATION TO COUNTY INCOME GROWTH IN THE UNITED STATES* |
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| Authors: | Daniel C Monchuk Dermot J Hayes John A Miranowski Dayton M Lambert |
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| Institution: | 1. College of Business, The University of Southern Mississippi, 118 College Drive #5072, Hattiesburg, MS 39406‐0001. E‐mail: dmonchuk@gmail.com;2. Department of Economics, Iowa State University, 568C Heady Hall, Ames, IA 50011. E‐mail: dhayes@iastate.edu;3. Department of Economics, Iowa State University, 382B Heady Hall, Ames, IA 50011. E‐mail: jmirski@iastate.edu;4. Department of Agricultural and Resource Economics, The University of Tennessee, 321A Morgan Hall, Knoxville, TN 37996‐4518. E‐mail: dmlambert@tennessee.edu |
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| Abstract: | ABSTRACT This study examines aggregate county income growth across the 48 contiguous states from 1990 to 2005. To control for endogeneity, we estimate a two‐stage spatial error model and implement a number of spatial bootstrap routines to infer parameter significance. Among the results, we find that outdoor recreation and natural amenities favor positive growth in rural counties and property taxes correlate negatively with rural growth. Comparing bootstrap inference with other models, including the recent General Moment heteroskedastic‐robust spatial error estimator, we find similar conclusions suggesting bootstrapping can be effective in spatial models where asymptotic results are not well established. |
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