January 2025
Sascha O. Becker, P. David Boll, Hans-Joachim Voth
Abstract:
Spatial unit roots can lead to spurious regression results. We present a brief overview of the methods developed in Müller and Watson (2024) to test for and correct for spatial unit roots. We also introduce a suite of Stata commands (-spur-) implementing these techniques. Our commands exactly replicate results in Müller and Watson (2024) using the same Chetty et al. (2014) data. We present a brief practitioner’s guide for applied researchers.
Download this paper here: https://www.rfberlin.com/wp-content/uploads/2025/01/25002.pdf
