<title>Abstract</title> Spatial filtering in various forms has become a popular way to address spatial dependence in statistical models (Griffith, 2003; Tiefelsdorf & Griffith, 2007). However, spatial filtering faces computational challenges for large <italic>n</italic> as the current method requires order of n-super-3 operations....

Most spatial econometrics work focuses on spatial dependence in the regressand or disturbances. However, LeSage and Pace (2009) show that the bias from applying OLS to a regressand generated from a spatial autoregressive process was exacerbated by spatial dependence in the regressor. Also, the...