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Consider the following spatial error model =+, =+, Wherein, 1,..., ~IID (0, ^2),X includes exogenous explanatory variables, matrix ( ) is an exogenous spatial weight
Consider the following spatial error model =+, =+, Wherein, 1,..., ~IID (0, ^2),X includes exogenous explanatory variables, matrix ( ) is an exogenous spatial weight matrix. a) What are the properties of the OLS estimator of in the above model? b) Please write the asymptotically valid estimator of in the above model and explain in detail the steps required to obtain this estimator.
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