NSIM: number of simulations to be performed, default = 200
sd: starting seed, default = 12345
Returns
An object of class 'impactsSDPDm'
Details
For spatial dynamic panel data model:
yt=τyt−1+ρWyt+ηWyt−1+Xtβ+WXtθ+α+μ+ut
Short term effects for kth explanatory variable:
(I−ρW)−1(βkIn+θkW)
Long term effects for kth explanatory variable:
((1−τ)In−(ρ+η)W)−1(βkIn+θkW)
The direct effect is the average of the diagonal elements, and the indirect effect is the average of the row sums of the non-diagonal elements of the matrix.