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100 _aKang, Wei
_956515
245 _aInference for Income Mobility Measures in the Presence of Spatial Dependence/
260 _bSage,
_c2020.
300 _aVol 43, Issue 1-2, 2020( 10–39 p.)
520 _aIncome mobility measures provide convenient and concise ways to reveal the dynamic nature of regional income distributions. Statistical inference about these measures is important especially when it comes to a comparison of two regional income systems. Although the analytical sampling distributions of relevant estimators and test statistics have been asymptotically derived, their properties in small sample settings and in the presence of contemporaneous spatial dependence within a regional income system are underexplored. We approach these issues via a series of Monte Carlo experiments that require the proposal of a novel data generating process capable of generating spatially dependent time series given a transition probability matrix and a specified level of spatial dependence. Results suggest that when sample size is small, the mobility estimator is biased while spatial dependence inflates its asymptotic variance, raising the Type I error rate for a one-sample test. For the two-sample test of the difference in mobility between two regional economic systems, the size tends to become increasingly upward biased with stronger spatial dependence in either income system, which indicates that conclusions about differences in mobility between two different regional systems need to be drawn with caution as the presence of spatial dependence can lead to false positives. In light of this, we suggest adjustments for the critical values of relevant test statistics.
700 _aRey, Sergio J.
_956516
773 0 _011129
_917016
_dSage, 2019.
_tInternational regional science review
856 _uhttps://doi.org/10.1177/0160017619826291
942 _2ddc
_cEJR
999 _c14098
_d14098