Overview

This is week three (of three) where we continue our review of linear algebra. This week is a bit more geospatially focuses as the focus is spatial weights objects. Spatial weights objects have frequent application in spatial econometrics and more generally spatial statistics.

Objectives

At the conclusion of this chapter and the assocaiated assignment, you will be able to:

• describe a spatial weights object;
• apply row standardization to a spatial weights object and explain why row standardization is used;
• spatially lag variables using a spatial weights object;
• identify spatial lag and spatial error regression models
• compute the Moran's I statistic using matrix and sigma notation.