Empirical likelihood for spatial cross-sectional data models with matrix exponential spatial specification

In this paper, we study spatial cross-sectional data models in the form of matrix exponential spatial specification (MESS), where MESS appears in both dependent and error terms. The empirical likelihood (EL) ratio statistics are established for the parameters of the MESS model. It is shown that the limiting distributions of EL ratio statistics follow chi-square distributions, which are used to construct the confidence regions of model parameters. Simulation experiments are conducted to compare the performances of confidence regions based on EL method and normal approximation method.