predict.spautolm

If you want simulations around
those point estimates, you can introduce spatial autocorrelation with the
lambda term, but lambda will not impact the predictions unless the model
was misspecified, I believe.

I'm not quite sure I understand why. If lambda does not impact the
predictions, would its estimate not converge to zero?

Is it wrong to do out-of-sample validation using the method used for
in-sample fitted values in spautolm itself, where
yhat = Xb + lambda  W  (y-Xb)
?

(My background is in econometrics, not spatial statistics, so I apologize
if this is obvious to those with a more acute understanding of spatial
statistics).

Thanks for your help,
Bjarke Christensen