{smcl}
{* December 2008}{...}
{* Updated, January 2010}
{hline}
{cmd:help for splagvar}
{hline}
{title:Title}
{p 2 8 2}
{bf:splagvar --- Generates spatially lagged variables, constructs the Moran scatter plot, and calculates global Moran's I statistics.}
{marker contents}{dlgtab: Table of Contents}
{p 2 16 2}
{p 2}{help splagvar##syntax:Syntax}{p_end}
{p 2}{help splagvar##description:General description}{p_end}
{p 2}{help splagvar##options:Description of the options}{p_end}
{p 2}{help splagvar##examples:Examples}{p_end}
{p 2}{help splagvar##refs:References}{p_end}
{p 2}{help splagvar##author:Author information}{p_end}
{p 2}{help splagvar##citation:Citation}{p_end}
{hline}
{marker syntax}{title:Syntax}
{phang}
{cmd: splagvar} [{varlist:1}] [{help if}] [{help in}]{cmd:,} [{opt wn:ame(weights_name)} {opt wf:rom(Stata|Mata)} {cmd:ind(}{it:{varlist:2}}{cmd:)} {it:Other_options}]
{synoptset 25 tabbed}
{synopthdr}
{synoptline}
{syntab:Options}
{synopt :{opt wn:ame(weights_name)}}indicate the name of the spatial weights matrix to be used{p_end}
{synopt :{opt wf:rom(Stata|Mata)}}indicate source of the spatial weights matrix{p_end}
{synopt :{cmd:ind(}{it:{varlist:2}}{cmd:)}}request spatially lagged explanatory variables{p_end}
{synopt :{opt order(#)}}indicate the lag order for the spatially lagged explanatory variables to be created{p_end}
{synopt :{cmd:plot(}{varname}{cmd:)}}construct the Moran scatter plot{p_end}
{synopt :{opt title(title_info)}}indicate a title for the Moran scatter plot{p_end}
{synopt :{help prefix_saving_option:{bf:saving(}{it:filename}{bf:, ...)}}}save the graph to {it:filename}{p_end}
{synopt :{opt note(note_info)}}provide notes about the graph{p_end}
{synopt :{opt reps(#)}}set the number of random permutations{p_end}
{synopt :{opt seed(#)}}specify a seed number{p_end}
{synopt :{cmd:moran(}{varname}{cmd:)}}request Moran's I statistics{p_end}
{synopt :{cmd:qvar(}{varlist:3}{cmd:)}}generate quasi-instrumental variables{p_end}
{synopt :{cmd:qname(}{help newvarlist}{cmd:)}}provide names for the quasi-instrumental variables{p_end}
{synopt :{opt replace}}overwrite existing spatially lagged variables{p_end}
{synopt :{opt favor(speed|space)}}favor speed or space when calculating the spatially lagged variables and the Moran's I statistics{p_end}
{synoptline}
{p2colreset}{...}
{marker description}{dlgtab:Description}
{pstd}{cmd:splagvar} generates spatially lagged variables, constructs the Moran scatter plot, and calculates global
Moran's I statistics to test for the presence of spatial dependence. The Moran's I p-value displayed on the Moran scatter plot is
calculated using a random permutation procedure. Optionally, quasi-instruments can be generated. Unless quasi-instruments are requested,
{cmd:splagvar} requires a spatial weights matrix which must have been created using {cmd:spwmatrix} or any other commands that generate
spatial weights. The purpose of {cmd:splagvar} is to facilitate estimation by spatial two-stage least squares and generalized method of
moments of spatial econometrics models in Stata (see the {help splagvar##examples:example} section).{p_end}
{pstd}While generated spatially lagged dependent variables are prefixed with wy_, generated first, second, and third order spatially
lagged explanatory variables are prefixed with wx_, w2x_, and w3x_ respectively. The names of the supplied variables make up the
remaining portions.{p_end}
{marker options}{dlgtab:Options}
{phang}
{opt wname(weights_name)} specifies the name of the spatial weights matrix to be used.
{phang}{opt wfrom}{cmd:(}{help matrix:Stata} | {help mf_fopen##remarks5:Mata}{cmd:)} indicates whether the spatial
weights matrix is a Stata matrix loaded in memory or a Mata file located in the working directory. If the spatial weights matrix had
been created using {help spwmatrix} it should exist as a Stata matrix or as a Mata file.{p_end}
{pmore}{opt wname()} and {opt wfrom()} are required, unless {opt qvar()} and {opt qname()} are specified.
{phang}
{cmd:ind(}{it:{varlist:2}}{cmd:)} specifies a list of explanatory variables whose spatial lags need to be calculated. Variables deemed dependent
or endogenous must be supplied in {varlist:1}.
{phang}
{opt order(#)} specifies the spatial lag order (up to 3) for the spatially lagged explanatory variables to be created.
By default, first order spatial lags are calculated. For dependent or endogenous variables, only first order spatial lags may be generated.
{phang}{cmd:plot(}{varname}{cmd:)} constructs the Moran scatter plot for the dependent variable {varname} listed in {varlist:1}.
On the plot are reported Moran's I statistics and the associated p-value based on a random permutation procedure.{p_end}
{phang}
{opt title(title_info)} specifies a title for the Moran scatter plot.
{phang}
{opt note(note_info)} provides notes associated with the graph.
{phang}
{opt saving(filename, ...)} saves the graph to {it:filename}. Specifying the suboption {opt replace} with the option {opt saving()} will replace
the graph if it already exists.
{phang}
{opt seed(#)} sets the random-number seed, which is defaulted to {opt seed(042009)}. This option is useful to ensure replicability of the results.
{phang}
{opt reps(#)} specifies the number of random permutations to be performed. The default is {opt reps(999)}.
{phang}
{cmd:moran(}{varname}{cmd:)} requests that global Moran's I statistics calculated under the assumptions of normal approximation and randomization
be displayed. Again, {varname} must be from {varlist:1}.
{pmore}
N.B.: If {varlist:1} is not specified, none of the options {opt plot()}, {opt saving()}, {opt title()}, {opt moran()}, {opt note()}, {opt reps()},
and {opt seed()} may be specified.
{phang}
{cmd:qvar(}{varlist:3}{cmd:)} specifies the variables to be used in generating quasi-instrumental variables.
{phang}{cmd:qname(}{help newvarlist}{cmd:)} specifies a list of variable names for the generated quasi-intrumental variables coded 1, 0, and -1
depending on whether or not the values of the corresponding variables specified with {opt qvar()} are in the upper, middle or lower third of values
when placed in rank order (see Fingle and Le Gallo, 2008).
{phang}
{opt replace} overwrites existing spatially lagged variables.
{phang}
{opt favor(speed|space)} instructs {cmd:splagvar} to favor speed or space when calculating the spatially lagged variables or the Moran's I statistics.
{opt favor(speed)} is the default. This option provides a tradeoff between speed and memory use. See {help mata_set:[M-3] mata set}.
{marker examples}{dlgtab:Examples}
{phang}
1) Create a spatial lag for the dependent variable, construct the Moran scatter plot, and request Moran's I statistics
{pmore}{cmd:. splagvar povrate, wname(C:\data/spweight) wfrom(Mata) plot(povrate) moran(povrate)}{p_end}
{phang}
2) Create a spatially lagged dependent variable and request Moran's I statistics and p-value under both normal approximation and randomization
{pmore}{cmd:. splagvar crimerate, wname(spweight) wfrom(Stata) moran(crimerate)}{p_end}
{phang}
3) Create a spatially lagged dependent variable and first and second order spatially lagged independent variables
{pmore}{cmd:. splagvar houseval, wname(spweight1) wfrom(Mata) ind(income population education) order(2)}
{pstd}Now estimating a spatial lag model by {hi:spatial 2SLS} and {hi:GMM} using {hi:WX} and {hi:(W^2)X}
as instruments has never been easier.{p_end}
{pmore}{cmd:. ivregress 2sls houseval (wy_houseval=wx_* w2x_*) income population education, vce(robust)}
{pmore}{cmd:. ivregress gmm houseval (wy_houseval=wx_* w2x_*) income population education}
{pstd}Other endogenous variables can be added to the model provided instruments are available.{p_end}
{pmore}{cmd:. ivregress gmm houseval (wy_houseval endogvar=wx_* w2x_* endogvar_instr) income population education}
{pstd}Education can be considered endogenous if you can find a good instrument.{p_end}
{pmore}{cmd:. ivregress gmm houseval (wy_houseval education=wx_* w2x_* education_instr) income population}
{pstd}Iterative GMM can be more efficient than two-step GMM.{p_end}
{pmore}{cmd:. ivregress gmm houseval (wy_houseval education=wx_* w2x_* education_instr) income population, igmm}
{pstd}Note: If you want to use the lags of an instrumental variable as instruments, then you need to include it in {varlist:2}
{phang}
4) Create a quasi-instrumental variable to be used as an instrument for education
{pmore}{cmd:. splagvar, qvar(education) qname(educ_qinst)}
{synoptline}
{marker refs}{title:References}
{bf:Anselin, L.} 2005. {it:Exploring Spatial Data with GeoDaTM : A Workbook.} Available at:
{browse "http://www.csiss.org/clearinghouse/GeoDa/geodaworkbook.pdf":http://www.csiss.org/clearinghouse/GeoDa/geodaworkbook.pdf}
{bf:Anselin, L.} 2007. "Spatial Econometrics". In T. C. Mills and K. Patterson (Eds). {it:Palgrave Handbook of Econometrics}. Vol 1,
Econometric Theory. New York: Palgrave MacMillan, pp. 901-969.
{bf:de Smith, M.J., M.F. Goodchild, and P.A. Longley}. 2007. {it:Geospatial Analysis: A comprehensive Guide to Principles, Techniques, and Software Tools}.
Matador: Leicester, UK
{browse "http://www.spatialanalysisonline.com":http://www.spatialanalysisonline.com}
{bf:Fingleton. B. and J. Le Gallo}. 2008. "Estimating Spatial Models with Endogenous Variables, a Spatial Lag and Spatially
Dependent Disturbances: Finite Sample Properties ", {it:Papers in Regional Science} 87(3): 319-339.
{bf:Gould, W.} 2006. "Mata Matters: Creating New Variables—Sounds Boring, Isn't". {it:The Stata Journal} 6: 112-123.
Available from {browse "http://www.stata-journal.com/article.html?article=pr0021":http://www.stata-journal.com/article.html?article=pr0021}
{bf:Klotz, S.} 2004. {it:Cross-sectional Dependence in Spatial Econometrics Models: with an Application to German Start-up Activity Data.}
Transaction Publishers, Piscataway, NJ.
{marker author}{title:Author}
{p 4 4 2}{hi: P. Wilner Jeanty}, Dept. of Agricultural, Environmental, and Development Economics,{break}
The Ohio State University{break}
{p 4 4 2}Email to {browse "mailto:jeanty.1@osu.edu":jeanty.1@osu.edu} for any comments or suggestions.
{marker citation}{title:Citation}
Thanks for citing {cmd:splagvar} as follows:
{bf:Jeanty, P.W.}, 2010. {bf:splagvar}: {it:Stata module to generate spatially lagged variables, construct the Moran scatter plot, and calculate global Moran's I statistics}
Available from http://ideas.repec.org/c/boc/bocode/s457112.html.
{title:Also see}
{p 4 13 2}Online: {helpb spwmatrix}, {helpb spatgsa}, {helpb spatcorr} (if installed)