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Formal approaches to assess the validity of spatial theoretical constructs are reviewed and evaluated with respect to their application and potential in spatial econometrics. A distinction is made between specification tests and model selection procedures. For the first, particular emphasis is on tests for residual spatial autocorrelation, tests on common factors, and tests on non-nested hypotheses. For the second, attention is focused on information-theoretic criteria, Bayesian approaches, and heuristic procedures. Also, some thoughts are presented on model validation as a multiobjective decision problem and its relevance in planning and policy analysis.
Luc Anselin (Thu,) studied this question.
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