Hanck, ChristophKrämer, Walter2010-05-252010-05-252010-05-25http://hdl.handle.net/2003/2724010.17877/DE290R-8686We investigate the OLS-based estimator s2 of the disturbance variance in an error component linear panel regression model when the disturbances are homoskedastic, but spatially correlated. Although consistent (Song and Lee, Econ. Lett. 2008), s2 can be arbitrarily biased towards zero in finite samples.enDiscussion Paper / SFB 823;18/2010BiasPanel dataSpatial error correlation310330620report