Calvó-Armengol, Antoni; Patacchini, Eleonora; Zenou, Yves - Institute for the Study of Labor (IZA) - 2008
geometry of the peer network, so that the model is fully identified (see Durlauf, 2002, for a critical
account of salient …) variable, X is a n×M matrix of observations
on the exogenous variables associated to the M × 1 regression coefficient vector β, D … counterpart of the Anselin (1988) spatial error model where an exogenous variable (G1) has been added in the
error process.
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Our …