Dear statalist,

I conducted a spatial durbin model with the following code (the data is available here ):




Code:
cd "C:\Users\hulenyi\Disk Google\Dokumenty\ISA\natura2000\calculations\dista nce matrices\distance"
use "dm_cut1c.dta"
spmat dta dm_st V*, replace
spmat summarize dm_st

clear
import excel "C:\Users\hulenyi\Disk Google\Dokumenty\ISA\natura2000\calculations\Data\ esifdata94_new.xlsx", sheet("Sheet 1") firstrow

destring year, replace
destring regid36, replace

xtset regid36 year


gen wgilefp = wgipca*lefpayr

xsmle gdppcgr laglgdppc linvr lpopgr wgipca lefpayr wgilefp, wmat(dm_st) model(sdm) robust fe type(both) effects
estimates store `var', title(GDPPCGR)
test [Wx]laglgdppc = [Wx]linvr = [Wx]lpopgr = [Wx]wgipca = [Wx]wgilefp = [Wx]lefpayr = 0
testnl ([Wx]laglgdppc = - [Spatial]rho*[Main]laglgdppc) ([Wx]linvr = - [Spatial]rho*[Main]linvr) ([Wx]lpopgr = - [Spatial]rho*[Main]lpopgr) ([Wx]wgipca = - [Spatial]rho*[Main]wgipca) ([Wx]lefpayr = - [Spatial]rho*[Main]lefpayr) ([Wx]wgilefp = - [Spatial]rho*[Main]wgilefp)


esttab dm_cut1c using "C:\Users\hulenyi\Disk Google\Dokumenty\ISA\natura2000\calculations\resul ts2401a.tex", se bic aic
With the model not converging:
Code:
Iteration 0:   Log-pseudolikelihood =  10689.627  
Iteration 1:   Log-pseudolikelihood =  10753.541  
Iteration 2:   Log-pseudolikelihood =  10815.604  
Iteration 3:   Log-pseudolikelihood =   10815.85  
Iteration 4:   Log-pseudolikelihood =   10815.85  
Iteration 5:   Log-pseudolikelihood =   10815.85  (backed up)
Iteration 6:   Log-pseudolikelihood =   10815.85  (backed up)
...

Iteration 100: Log-pseudolikelihood =   10815.85  (backed up)
convergence not achieved

Why does my model not converge? What would be a possible solution here?

Best,

Martin Hulenyi