I have a question with regard to a possible bias as a result of how one constructs the spatial weights matrix. Consider a case where one works with areal data, for instance we're interested in whether the crime rate in one neighbourhood depends on the rate in other states. The spatial weights matrix is this case can be constructed using contiguity,e.g. queen contiguity based on 1st order neighbours, or using a distance cut off.
Working with areal data the polygons used as unit of analysis are rarely equally size. So it seems to me that if one uses the distance based spatial weights matrix the results might be biased due to this variability in size among the polygons.
I wondered whether anyone knows of any good references from the literature on this subject? I didn't have much success with my internet search so far. Thanks in advance.