clear all;
A=xlsread('C:\MATLAB7\da.xls');
W1=xlsread('C:\MATLAB7\qz.xls');
% Dataset downloaded from www.wiley.co.uk/baltagi/
% Spatial weights matrix constructed by Elhorst
%
% written by: J.Paul Elhorst summer 2008
% University of Groningen
% Department of Economics
% 9700AV Groningen
% the Netherlands
% j.p.elhorst@rug.nl
%
% REFERENCES:
% Elhorst JP (2009) Spatial Panel Data Models. In Fischer MM, Getis A (Eds.)
% Handbook of Applied Spatial Analysis, Ch. C.2. Springer: Berlin Heidelberg New York.
%
% dimensions of the problem
T=15; % number of time periods
N=30; % number of regions
% row-normalize W
W=normw(W1); % function of LeSage
y=A(:,[7]); % column number in the data matrix that corresponds to the depen