Estimation of the Coefficients of a Linear Regression in the Presence of Spatial Autocorrelation. An Application to a Belgian Labour-Demand Function

Abstract

Regression analyses of a spatially distributed variable is a common technique in urban and regional planning. Frequently, however, the disturbance terms are not completely independent but exhibit spatial autocorrelation. A method is proposed for taking account of this spatial autocorrelation and is illustrated by means of an application to a Belgian labour-demand function.