[R-sig-Geo] LR1.sarlm specifications

Amitha Puranik pur@n|k@@m|th@ @end|ng |rom gm@||@com
Thu Jul 11 05:15:39 CEST 2019


Hi Prof. Roger,

I am using the approach proposed by Prof Paul Erhorst for choosing a
spatial model in his paper '*Applied spatial econometrics: raising the bar*'
.
As per the strategy, one has to check the likelihood ratio test for theta
(spatial autocorrelation in exogenous (independent) variables) and also in
theta+rho*beta (spatial autocorrelation in residuals).
Suppose I fit a spatial durbin model and use the code LR1.sarlm(sp.dm), how
would I know whether the likelihood ratio test checks for autocorrelation
in dependent variable or autocorrelation in the independent variable?

Thanks in advance.
Amitha Puranik.

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