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Modify lagsarlm function in spdep package

On Wed, 12 Dec 2012, Lei Wang wrote:

            
You do not want to do this in this way - simply create two new variables 
with lag.listw() and use them in a regular lag model. You will not be able 
to use impact measures in the usual way - if n is small enough to invert 
(I - \rho W), use dense matrix methods to generate the S(W)_r for the 
variable pair.

Roger

PS: the reasons functions and variables are not found in your case is that 
they are not exported in the NAMESPACE, so need to be prepended with 
spdep:::.