The SPATIALREG Procedure

The SPATIALEFFECTS statement enables you to specify covariates (such as X) whose spatial lag, WX, is to be added to the MODEL statement.

PROC SPATIALREG adds the spatially weighted model-spatial-effect-regressors to regressors that are specified in the MODEL statement. For example, if you specify q variables in the SPATIALEFFECTS statement, then each of q spatially weighted variables, as represented by each column of , has a parameter to be included in the regression. Here, denotes the matrix product of and . In addition, is the design matrix formed by the q variables . The spatial weights matrix comes from the data set that is specified in the WMAT= option. The "Parameter Estimates" table in the displayed output shows the estimates for spatially weighted model-spatial-effect-regressors; they are labeled with the prefix "W_". For example, if you specify z (a variable in your primary data set) as a spatial effect explanatory variable, then the "Parameter Estimates" table labels the corresponding parameter estimate "W_z".