Supported Models

Cross Sectional Models

OLS

\[y = X\beta + \epsilon\]

SLX

\[y = X\beta + WX\theta + \epsilon\]

SAR

\[y = \rho Wy + X\beta + \epsilon\]

SEM

\[y = X\beta + u, \quad u = \lambda Wu + \epsilon\]

SDM

\[y = \rho Wy + X\beta + WX\theta + \epsilon\]

SDEM

\[y = X\beta + WX\theta + u, \quad u = \lambda Wu + \epsilon\]

Panel Models

OLS panel

\[y_{it} = x_{it}' \beta + a_i + \tau_t + \epsilon_{it}\]

SAR panel

\[y_{it} = \rho Wy_{it} + x_{it}' \beta + a_i + \tau_t + \epsilon_{it}\]

SEM panel

\[y_{it} = x_{it}' \beta + a_i + \tau_t + u_{it}, \quad u_{it} = \lambda Wu_{it} + \epsilon_{it}\]

SDM panel

\[y_{it} = \rho Wy_{it} + x_{it}' \beta + Wx_{it}' \theta + a_i + \tau_t + \epsilon_{it}\]

SDEM panel

\[y_{it} = x_{it}' \beta + Wx_{it}' \theta + a_i + \tau_t + u_{it}, \quad u_{it} = \lambda Wu_{it} + \epsilon_{it}\]

SLX panel

\[y_{it} = x_{it}' \beta + Wx_{it}' \theta + a_i + \tau_t + \epsilon_{it}\]

OLS panel (Random Effects)

\[y_{it} = x_{it}' \beta + \alpha_i + \tau_t + \epsilon_{it}, \quad \alpha_i \sim N(0, \sigma_\alpha^2)\]

SAR panel (Random Effects)

\[y_{it} = \rho W y_{it} + x_{it}' \beta + \alpha_i + \tau_t + \epsilon_{it}, \quad \alpha_i \sim N(0, \sigma_\alpha^2)\]

SEM panel (Random Effects)

\[y_{it} = x_{it}' \beta + \alpha_i + \tau_t + u_{it}, \quad u_{it} = \lambda W u_{it} + \epsilon_{it}, \quad \alpha_i \sim N(0, \sigma_\alpha^2)\]

SDEM panel (Random Effects)

\[y_{it} = x_{it}' \beta + W x_{it}' \theta + \alpha_i + u_{it}, \quad u_{it} = \lambda W u_{it} + \epsilon_{it}, \quad \alpha_i \sim N(0, \sigma_\alpha^2)\]

Dynamic Panel Models

OLSPanelDynamic (Dynamic Linear Model)

\[y_{it} = \phi y_{i,t-1} + x_{it}' \beta + a_i + \tau_t + \epsilon_{it}\]

SDMRPanelDynamic (Dynamic Restricted Spatial Durbin)

\[y_{it} = \phi y_{i,t-1} + \rho W y_{it} - \rho \phi W y_{i,t-1} + x_{it}' \beta + W x_{it}' \theta + a_i + \tau_t + \epsilon_{it}\]

SDMUPanelDynamic (Dynamic Unrestricted Spatial Durbin)

\[y_{it} = \phi y_{i,t-1} + \rho W y_{it} + \theta W y_{i,t-1} + x_{it}' \beta + W x_{it}' \theta + a_i + \tau_t + \epsilon_{it}\]

SARPanelDynamic (Dynamic SAR)

\[y_{it} = \phi y_{i,t-1} + \rho W y_{it} + x_{it}' \beta + a_i + \tau_t + \epsilon_{it}\]

SEMPanelDynamic (Dynamic SEM)

\[y_{it} = \phi y_{i,t-1} + x_{it}' \beta + a_i + \tau_t + u_{it}, \quad u_{it} = \lambda W u_{it} + \epsilon_{it}\]

SDEMPanelDynamic (Dynamic SDEM)

\[y_{it} = \phi y_{i,t-1} + x_{it}' \beta + W x_{it}' \theta + a_i + \tau_t + u_{it}, \quad u_{it} = \lambda W u_{it} + \epsilon_{it}\]

SLXPanelDynamic (Dynamic SLX)

\[y_{it} = \phi y_{i,t-1} + x_{it}' \beta + W x_{it}' \theta + a_i + \tau_t + \epsilon_{it}\]

Non-Linear Models

Spatial Probit

\[y^* = \rho W y^* + X\beta + a + \varepsilon, \quad \varepsilon \sim \mathcal{N}(0, I), \quad y_i = \mathbf{1}[y_i^* > 0]\]

Tobit (SAR Tobit)

\[y_i = \max(c, y_i^*), \quad y^* = \rho W y^* + X\beta + \varepsilon, \quad \varepsilon \sim \mathcal{N}(0, \sigma^2 I)\]

Tobit (SEM Tobit)

\[y_i = \max(c, y_i^*), \quad y^* = X\beta + u, \quad u = \lambda Wu + \varepsilon, \quad \varepsilon \sim \mathcal{N}(0, \sigma^2 I)\]

Tobit (SDM Tobit)

\[y_i = \max(c, y_i^*), \quad y^* = \rho W y^* + X\beta + WX\theta + \varepsilon, \quad \varepsilon \sim \mathcal{N}(0, \sigma^2 I)\]

Panel Tobit (SAR)

\[y_{it} = \max(c, y_{it}^*), \quad y_t^* = \rho W y_t^* + X_t\beta + \varepsilon_t\]

Panel Tobit (SEM)

\[y_{it} = \max(c, y_{it}^*), \quad y_t^* = X_t\beta + u_t, \quad u_t = \lambda W u_t + \varepsilon_t\]

Flow Models

Vectorize the origin-destination flow matrix to \(y \in \mathbb{R}^{N}\) with \(N = n^2\), and define destination, origin, and network weight matrices as \(W_d\), \(W_o\), and \(W_w\).

OLSFlow

\[y = X\beta + \varepsilon\]

PoissonFlow

\[y_{ij} \sim \operatorname{Poisson}(\lambda_{ij}), \quad \log \boldsymbol{\lambda} = X\beta\]

SARFlow

\[y = \rho_d W_d y + \rho_o W_o y + \rho_w W_w y + X\beta + \varepsilon\]

SARFlowSeparable

\[y = \rho_d W_d y + \rho_o W_o y - \rho_d \rho_o W_w y + X\beta + \varepsilon\]

PoissonSARFlow

\[y_{ij} \sim \operatorname{Poisson}(\lambda_{ij}), \quad \log \boldsymbol{\lambda} = A(\boldsymbol{\rho})^{-1} X\beta\]

PoissonSARFlowSeparable

\[y_{ij} \sim \operatorname{Poisson}(\lambda_{ij}), \quad \log \boldsymbol{\lambda} = A(\boldsymbol{\rho})^{-1} X\beta, \quad \rho_w = -\rho_d \rho_o\]

SEMFlow

\[y = X\beta + u, \quad u = \lambda_d W_d u + \lambda_o W_o u + \lambda_w W_w u + \varepsilon, \quad \varepsilon \sim \mathcal{N}(0, \sigma^2 I)\]

SEMFlowSeparable

\[y = X\beta + u, \quad u = \lambda_d W_d u + \lambda_o W_o u - \lambda_d \lambda_o W_w u + \varepsilon, \quad \varepsilon \sim \mathcal{N}(0, \sigma^2 I)\]

Panel Flow Models

Stack the flow models above across \(T\) periods in time-first order. The Poisson panel variants currently operate in pooled mode.

OLSFlowPanel

\[y_t = X_t\beta + \varepsilon_t, \quad \varepsilon_t \sim \mathcal{N}(0, \sigma^2 I_N)\]

PoissonFlowPanel

\[y_{ij,t} \sim \operatorname{Poisson}(\lambda_{ij,t}), \quad \log \boldsymbol{\lambda}_t = X_t\beta\]

SARFlowPanel

\[y_t = \rho_d W_d y_t + \rho_o W_o y_t + \rho_w W_w y_t + X_t\beta + \varepsilon_t\]

SARFlowSeparablePanel

\[y_t = \rho_d W_d y_t + \rho_o W_o y_t - \rho_d \rho_o W_w y_t + X_t\beta + \varepsilon_t\]

PoissonSARFlowPanel

\[y_{ij,t} \sim \operatorname{Poisson}(\lambda_{ij,t}), \quad \log \boldsymbol{\lambda}_t = A(\boldsymbol{\rho})^{-1} X_t\beta\]

PoissonSARFlowSeparablePanel

\[y_{ij,t} \sim \operatorname{Poisson}(\lambda_{ij,t}), \quad \log \boldsymbol{\lambda}_t = A(\boldsymbol{\rho})^{-1} X_t\beta, \quad \rho_w = -\rho_d \rho_o\]

SEMFlowPanel

\[y_t = X_t\beta + u_t, \quad u_t = \lambda_d W_d u_t + \lambda_o W_o u_t + \lambda_w W_w u_t + \varepsilon_t, \quad \varepsilon_t \sim \mathcal{N}(0, \sigma^2 I_N)\]

SEMFlowSeparablePanel

\[y_t = X_t\beta + u_t, \quad u_t = \lambda_d W_d u_t + \lambda_o W_o u_t - \lambda_d \lambda_o W_w u_t + \varepsilon_t, \quad \varepsilon_t \sim \mathcal{N}(0, \sigma^2 I_N)\]