If method=rook or method=queen, an nxn contiguity matrix is defined using the spdep package.
A queen definition of contiguity means that two tracts are defined as contiguous if they share at least one point.
A better definition of rook might be "non-queen": two tracts are defined as contiguous if they share two or more points.
The rook and queen options require a shape file. The contiguity matrix is row-normalized to form the weight matrix.If method=knear, the k nearest neighbors are each given a weight of 1/k to form W. The calculations are made using the spdep package.
Either a shape file or a matrix of geographic coordinates can be provided to the knear option.
If method=ring, each observation within a distance of ringdist from observation i is given equal weight in row i.
More distant observations receive a weight of zero.
If method=kernel, a kernel weight function is used to define W, with the window size determined by the window option.
The kernel weight function is defined by the kern option.
The weights are $W_{ij} = K(d_{ij}/h)/h$ for $d_{ij}h$. The matrix is then row-normalized.
Eigenvalues are returned if the eigenvalues=T is specified.