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mmgm
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I think they are equivalent ways of doing the same thing.

I would guess that Professor Bivand is concerned that it might not be possible to compute (I - pW)^-1 since W is usually sparse but (I-pW)^-1 is often dense and impossible to compute for large N (unless you have unlimited RAM).

Professor LeSage does it assuming smaller problems or if you are reading the book "Introduction to Spatial Econometrics" he does it so that is is easy to understand. But if you think of the way OLS is estimated in matrix form you will see that is exactly the same thing.

mmgm
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