ncol <- 20
n <- ncol^2
listw <- sim_grid_listw(ncol, ncol) # Create spatial weights for a grid
u <- make_error(n) # Simulate random errors
x <- make_x(
n,
mu = c(0.25, 5),
var = c(1, 0.75),
method = "normal"
) # Generate x variables
# create xb with intercept = 1, beta1 = 2, beta2 = -3
xb <- make_xb(x, c(1, 2, -3))
y <- sim_sar(u, xb, listw)
# combine data
df <- cbind(y = y, x)
# fit SAR model
# Note lambda, x_1, and x_2 estimates.
spatialreg::stsls(y ~ ., df, listw)
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