This directory contains an example program xca_stool1.m which performs spatial analysis on the same data set used in Pace and Barry (1997), "Sparse Spatial Autoregressions," Statistics and Probability Letters, 291-297.

This paper modeled housing prices vs characteristics such as income for the 20,640 census block groups in California which had complete data.

The variables are in the same order as in the paper with the exception of the intercept placed at the end instead of the beginning

The results match reasonably closely those in the paper with the different spatial weighting

The paper used conditional t statistics where these procedures use likelihood ratio statistics which account for the uncertainty in estimating the autoregressive parameter.

