Dear R users, I'm estimating a hedonic land price model at the parcel level, basically a linear regression model with land price as the dependent variable. I'm wondering if there is a function in R that I can use to control spatial auto-correlation among parcels that are adjacent to each other. I know multi-level regression can solve the problem partially by grouping parcels to a higher spatial level, such as block group or tract. However, the grouping could be very arbitrary. Is there a better way to do this? Thanks.
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