Exercise 3 3 Show that in the Spatial Error model, if the spatial correlation parameter r and the error variance s2e are both known, the ML estimators of coincide with the GLS estimators Derive the explicit expression of the GLS solution and of their error variances

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Question: Exercise 3.3 Show that in the Spatial Error model, if the spatial correlation parameter r and the error variance s2e are both known, the ML

Exercise 3.3 Show that in the Spatial Error model, if the spatial correlation parameter r and the error variance s2e are both known, the ML estimators of β coincide with the GLS estimators. Derive the explicit expression of the GLS solution and of their error variances.

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