[R-sig-Geo] Spatial Durbin Model (lagsarlm) with two different Weight Matrices

[Wingeier, Dominik]

Dear Community

I hope you are all doing well despite the special circumstances.

I would like to estimate the following spatial durbin model by making use of the lagsarlm(...,type ="mixed") function in R:

y = �W1y+X�+W2X� +�

where W1 and W2 have the same dimension and are both row standardized but different weights are assigned to the elements.
I found two older posts in the archive with similar problems (https://stat.ethz.ch/pipermail/r-sig-geo/2015-May/022852.html and https://stat.ethz.ch/pipermail/r-sig-geo/2015-May/022821.html) but I am struggling to understand the proposed solution and how to correctly implement the create_WX() in connection with the lagsarlm() function.
Therefore, I would like to kindly ask you for help on how to deal with two different weight matrices in the case of a spatial durbin model in R.

In advance many thanks for any help and suggestions.
Best regards
Dominik


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