Dear list



I have read “stsls” help file and Kelejian and Prucha (1998) for more than
one week, but still do not understand how to estimate "generalized spatial
two-stage least squares model"



in sample data



gp2a <- stsls(log(CMEDV) ~ CRIM + ZN + INDUS + CHAS + I(NOX^2) + I(RM^2) +
AGE + log(DIS) + log(RAD) + TAX + PTRATIO + B + log(LSTAT), data=boston.c,
nb2listw(boston.soi))




Which are endogenous variables and which are exogenous variables? Which
variables are used to obtain 2SLS
estimator?  What does the equations looks like?   exactly the same as
Kelejian and Prucha (1998) ?

Thanks





Best regard

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