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TheStataJournal(2013) 13,Number2,pp.242–286 Creatingandmanagingspatial-weighting matriceswiththespmatcommand DavidM.Drukker StataCorpCollegeStation, TXddrukker@stata.com HuaPeng StataCorpCollegeStation, TXhpeng@stata.com IngmarR.Prucha DepartmentofEconomics UniversityofMaryland CollegePark, MDprucha@econ.umd.edu RafalRaciborski StataCorpCollegeStation, TXrraciborski@stata.com Abstract.Wepresentthe spmatcommandforcreating,managing,andstoring spatial-weightingmatrices,whichareusedtomodelinteractionsbetweenspatial ormoregenerallycross-sectionalunits. spmatcanstorespatial-weightingmatrices inageneralandbandedform.Weillustratetheuseofthe spmatcommandand discusssomeoftheunderlyingissuesbyusingUnitedStatescountyandpostal- code-leveldata. Keywords: st0292,spmat,spatial-autoregressivemodels,Cmodels,spa- tiallag,spatial-weightingmatrix,spatialeconometrics,spatialstatistics,cross- sectionalinteractionmodels,social-interactionmodels 1Introduction Buildingon Whittle(1954),andOrd (1973,1981)developedstatisticalmodels thatnotonlyaccommodateformsofcross-unitcorrelationbutalsoallowforexplicit formsofcross-unitinteractions.Thelatterisafeatureofinterestinmanysocialsci- ence,biostatistical,andgeographicsciencemodels.Following andOrd (1973,1981),muchoftheoriginalliteraturewasdevelopedtohandlespatialinteractions. However,spaceisnotrestrictedtogeographicspace,andmanyrecentapplications usespatialtechniquesinothersituationsofcross-unitinteractions,suchassocial- interactionmodelsandnetworkmodels;see,forexample, KelejianandPrucha (2010)andDrukker,Egger,andPrucha (2013)forreferences.Muchofthenomenclaturestill includestheadjective“spatial”,andwecontinuethistraditiontoavoidconfusionwhile notingthewiderapplicabilityofthesemodels.Fortextsandreviews,see,forexample, Anselin(1988,2010),Arbia(2006),Cressie(1993),Haining(2003),and LeSageandPace (2009).Themodelsderivedanddiscussedintheliteraturecitedabovemodelcross-unit interactionsandcorrelationintermsofspatiallags,whichmayinvolvethedependent variable,theexogenousvariables,andthedisturbances.Aspatiallagofavariableis c2013StataCorpLP st0292
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