Matlab

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Two spatial weights matrices Posted by pvalue on 2 Apr 2012 at 9:20 AM
Hello!

I'm new in Matlab and have a very simple question. I'm trying to estimate a SAR model with two lags:

y=rho*W1*y+rho*W2*y+X*beta+u

Unfortunately, I have no idea how to program this, since the standard sar function only asks for one W matrix. I'm sure that there is a simple way of doing this, but I don't know it yet.

Thank you in advance!
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