Jin, Fei; Lee, Lung-fei - In: Regional Science and Urban Economics 42 (2012) 3, pp. 446-458
In this paper, we first generalize an approximate measure of spatial dependence, the APLE statistic (Li et al., 2007 …), to a spatial Durbin (SD) model. This generalized APLE takes into account exogenous variables directly and can be used to … likelihood of the SD (or SAR) model, whose first order approximation generates the APLE, we construct a moment equation quadratic …
