[R-sig-Geo] sphet using two Ws in the first equation

[Roger Bivand]

On Wed, 27 Nov 2013, Antonio Bubbico wrote:

> Hello,
>
> I would like to run a "generalized spatial two stage least squares" using
> the sphet package,
> where the model is given by:
>
> y = X \beta + \rho_{1}  W_{1} y + \rho_{2} W_{2} y + u
> u = \lambda W u + \varepsilon
>
> Actually I don't know how to run that model in R, and obviously the problem
> is the second W in the first equation.
>
> Do you know if there is possibility to implement the code to run that kind
> of model?

This model is not implemented in sphet or elsewhere in R packages as far 
as I know in any form. A reference to something similar is:

http://ideas.repec.org/p/ces/ceswps/_2356.html

but you may know this already. The domain of a process of this kind is 
something which has not been exhaustively studied.

Hope this clarifies,

Roger

>
> Regards,
>
> Antonio Bubbico.
>
>

-- 
Roger Bivand
Department of Economics, Norwegian School of Economics,
Helleveien 30, N-5045 Bergen, Norway.
voice: +47 55 95 93 55; fax +47 55 95 95 43
e-mail: Roger.Bivand at nhh.no