Dear readers,
I have a question about spatial econometrics:
I run a Moran I test on my residuals from OLS estimation and I didn't find evidence of any spatial correlation. However, when I run Peseran and Free's cross sectional dependence tests I find that there is a spatial or say cross sectional dependence.
The Moran I is only for cross sectional data however the Peseran and Free's test work on panel data.
I am looking what are the differences between Moran I and Peseran and free's test beyond the fact that they work on different set of data.
Finally, is there any Moran I for panel data...
And Also, is make it any sense to find cross sectional dependence using Pesaran and Free's test but not finding spatial correlation using Moran I ?
My data is 30 countries from 1995 to 2009. For the Moran I, I perform the test for each year and also using average over all the period.
Finding that there is cross sectional dependence I rely on a Driskoll Kraay estimator..Without going on pur spatial econometrics.
Thank you in advance for any help..