Spurious weather effects
Author:
- 15 November 2018
- journal article
- research article
- Published by Wiley in Journal of Regional Science
- Vol. 59 (2) , 322-354
Abstract
Rainfall is exogenous to human actions and hence popular as an exogenous source of variation. But it is also spatially correlated. This can generate spurious relationships between rainfall and other spatially correlated outcomes. As an illustration, rainfall on almost any day of the year has seemingly high predictive power of electoral turnout in Norwegian municipalities. In Monte Carlo analyses, I find that standard tests reject true null hypotheses in as much as 99% of cases. Standard approaches to estimating consistent standard errors do not solve the problem. Instead, I suggest controlling for spatial and spatiotemporal trends using multidimensional polynomials.Keywords
All Related Versions
Funding Information
- Norges Forskningsråd (179552)
This publication has 52 references indexed in Scilit:
- Weather conditions and political party vote share in Dutch national parliament elections, 1971–2010International Journal of Biometeorology, 2011
- Large panels with common factors and spatial correlationJournal of Econometrics, 2011
- DamsThe Quarterly Journal of Economics, 2007
- Varying-coefficient models and basis function approximations for the analysis of repeated measurementsBiometrika, 2002
- Mapping temperatures in Norway applying terrain information, geostatistics and GISNorsk Geografisk Tidsskrift - Norwegian Journal of Geography, 1999
- GMM estimation with cross sectional dependenceJournal of Econometrics, 1999
- A Generalized Moments Estimator for the Autoregressive Parameter in a Spatial ModelInternational Economic Review, 1999
- Nonparametric smoothing estimates of time-varying coefficient models with longitudinal dataBiometrika, 1998
- Understanding spurious regressions in econometricsJournal of Econometrics, 1986
- Identification Problems in Economic Model ConstructionEconometrica, 1949