[R-sig-Geo] Doubt in SPREG funtion of sphet package

[Pietro Andre Telatin Paschoalino]

Hello everyone.

I read the article Comparing Implementations of Estimation Methods for Spatial Econometrics, by Bivand and Piras, and I'm keep a little doubt about the matrix of instruments in case of aditional endogenous variables.

I believe that in this case the default of the lag.instr argument of the spreg function is false, that is, the lag of external instruments should not be included in the instrument matrix.

My question is, with the option lag.instr = TRUE, Wy would use the lag of the external instrument as an instrument, correct? And in case of my endogenous variable, would it also include, in addition to the external instrument, its lag (of external instrument)? Is the instrument matrix the same for both Wy and the other endogenous variable?

Thanks.

Pietro Andre Telatin Paschoalino
Doutorando em Ci�ncias Econ�micas da Universidade Estadual de Maring� - PCE.

[https://ipmcdn.avast.com/images/icons/icon-envelope-tick-round-orange-animated-no-repeat-v1.gif]<https://www.avast.com/sig-email?utm_medium=email&utm_source=link&utm_campaign=sig-email&utm_content=webmail&utm_term=icon>    Virus-free. www.avast.com<https://www.avast.com/sig-email?utm_medium=email&utm_source=link&utm_campaign=sig-email&utm_content=webmail&utm_term=link>

	[[alternative HTML version deleted]]