What question did this study set out to answer?

The aim is to address the impact of spatial unit roots on regression results and provide methods for correction.

May 27, 2026Open Access

Testing and correcting for spatial unit roots in regression analysis

Key Points

The aim is to address the impact of spatial unit roots on regression results and provide methods for correction.
Overview of testing and correcting methods developed by Müller and Watson.
Introduction of commands (spur) to implement these techniques.
Simulation illustration and algorithm guidance for applied regression analysis.
Commands replicate results from Müller and Watson using data from Chetty et al.
Successful demonstration of correction methods for space-related regression issues.

Abstract

Abstract Spatial unit roots can lead to spurious regression results. We present an overview of the methods developed in Müller and Watson (2024, Econometrica 92: 1661-1695) to test and correct for spatial unit roots and introduce a suite of commands ( spur ) implementing these techniques. Our commands exactly replicate results in Müller and Watson (2024) using the same data as Chetty et al. (2014, Quarterly Journal of Economics 129: 1553-1623). As a guide for applied researchers, we provide a practical algorithm for regression analysis using these methods and a simulated illustration in Stata.

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Cite This Study

Becker et al. (Mon,) studied this question.

synapsesocial.com/papers/6a168a640c924ddd1bd591ff https://doi.org/https://doi.org/10.1177/1536867x261449932

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