  When observing spatial data, what standard errors should we report? With the
finite population framework, we identify three channels of spatial correlation:
sampling scheme, assignment design, and model specification. The
Eicker-Huber-White standard error, the cluster-robust standard error, and the
spatial heteroskedasticity and autocorrelation consistent standard error are
compared under different combinations of the three channels. Then, we provide
guidelines for whether standard errors should be adjusted for spatial
correlation for both linear and nonlinear estimators. As it turns out, the
answer to this question also depends on the magnitude of the sampling
probability.

Econometrics