Lee, Lung-Fei; Yu, Jihai - In: Spatial Economic Analysis 8 (2013) 3, pp. 314-351
<title>Abstract</title> This paper studies the spatial autoregressive (SAR) model for cross-sectional data when the coefficient of the spatial lag of the dependent variable is near unity. We decompose the data generating process into an unstable component and a stable one, and establish asymptotic properties...