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