Spatial Lag Model

A Spatial Lag Model is a statistical tool used to analyze how the value of a variable, like property prices or crime rates, in one location is influenced by similar values in neighboring areas. It accounts for spatial dependence, meaning nearby locations tend to affect each other. This model helps researchers understand and predict how changes in one area might ripple out to nearby areas, providing insights into regional patterns and relationships that traditional models might miss. It's useful in urban planning, economics, and environmental studies for capturing spatial relationships.