Re: Spatial Durbin Model (lagsarlm) with two different Weight Matrices
On Sun, 3 May 2020, Wingeier, Dominik wrote:
> 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??? +???
Please post plain text only, if need be using LaTeX markup for symbols.
This is illegible.
> 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
Don't apply advive given in a different setting to a different problem.
Your model may be:
y = \rho W_1 y + X \beta + W_2 X \gamma + \varepsillon
This is not a Durbin model unless W_1 == W_2; if it was a Durbin model,
you would use
not using Durbin, by creating the spatial lags of each continuous X
variable one-by-one. If any X are factors, your job will be even more
involved. I would doubt strongly that you have a motivation for mixing
spatial weights in this way, I cannot see any obvious reason for using W_1
for y and W_2 for X.
Hope this clarifies,
> In advance many thanks for any help and suggestions.
> Best regards
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