Spatial Durbin Model

The Spatial Durbin Model (SDM) is a statistical tool used to analyze data that has a geographic or spatial component. It accounts for the fact that what happens in one location can influence nearby areas, capturing both the direct effects within a location and the spill-over effects from neighboring regions. For example, in urban studies, it helps understand how economic or environmental changes in one city block might impact adjacent areas. By considering these spatial relationships, the SDM provides a more accurate understanding of how variables interact across space.