Maximum Likelihood Estimation
Maximum likelihood estimation has been the standard method employed for estimating spatial econometric models. This chapter introduces these methods, examines the specific case of a spatial error model, and provides an example based on a large data set. In addition, the chapter sets forth various solutions to the computational difficulties that arise for large data sets.
KeywordsOrdinary Little Square Information Matrix Spatial Weight Matrix Spatial Error Model Observe Information Matrix
I would like to thank Mark Mclean, James LeSage, and Shuang Zhu for their very helpful comments.
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