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question on the difference between spdep function spautolm() and glm() with autocovariate

On Tue, 12 Feb 2013, Li, Han wrote:

            
No, because obviously they are different models:

spautolm: y = Xb + u, u = lambda W u + e, e ~ N(0, sigma2 I)

glm+auto: y = rho W y + Xb + e

Interpreting the latter is subject to great difficulty (see ?impacts) 
because the DGP is:

(I - rho W) y = Xb + e,

y = (I - rho W)^{-1} (Xb + e)

so the b coefficients cannot be interpreted directly. In addition, the glm 
estimate of rho is biassed because it is not constrained to its feasible 
range (so that (I - rho W) can be inverted).

Using geo-additive models, ML in the spautolm case, or others, is easier 
to handle because the fitted coefficients don't interact. It is only in 
some settings that the observations interact with each other directly, 
more often the autocorrelation is in the residuals.

Hope this clarifies,

Roger