In the present note we demonstrate how to implement the Lee and Yu (J Econom 154:165–185, <CitationRef CitationID="CR8">2010</CitationRef>) procedure for fixed effects spatial panel data models available from the <Emphasis FontCategory="SansSerif">R (R Development Core Team, <ExternalRef> <RefSource>http://www.R-project.org/</RefSource> <RefTarget Address="http://www.R-project.org/" TargetType="URL"/> </ExternalRef>, <CitationRef CitationID="CR16">2012</CitationRef>) package <Emphasis Type="Bold">splm  (Millo and Piras, J Stat Soft 47(1):1–38, <CitationRef...</citationref></emphasis></citationref></refsource></externalref></emphasis></citationref>

Farmers engaging in irrigated agriculture are subject to externalities stemming from their neighbours’ operational decisions on water use. Because of the nature of water flow, these externalities are more evident between neighbours in an upstream–downstream relationship rather than in...

The stationarity conditions for a spatial first-order and serial second-order model in the presence of time-lagged spatial interactions are discussed. The stationarity conditions for serial autoregressive parameters were found on the basis of the structural vector autoregression form of the...