spxtregress command error

[Harsha Konara]

Dear all

I am trying to use spatial regression commands in STATA in a panel data set up. Basically, my command is as follows

spxtregress y x1 x2, fe dvarlag(W)

But when I run this I am getting the following error,

"initial values not feasible
concentrated optimization fails"

I have followed all the prior steps such as xtset, spset and generating the spatial matrix without any trouble

Can someone please help me to figure out the reason for this error.

Thank you in advance

Harsha

[Ephraim Nkonya]

Hi Hasha,
I am experiencing the same problem. Did you get a reply to your answer? If so, please share with me how to solve this problem.