Spatial Econometric MethodsIn addition to the omitted variablebias, we also are concerned about the bias or inefficiency of the estimates due to the spatial correlation in the data.
By using panel data and fixed effects regression models, we have developed in this paper a new method which can be used to correct the omitted variablebias in some regression models.
The SEL and the absolute bias approach for parameter design are studied and improved, on the basis of which the variable compartment iteration searching method is advanced in this paper.