scholarly journals Measurement Error and the Specification of the Weights Matrix in Spatial Regression Models

2019 ◽  
Vol 28 (2) ◽  
pp. 284-292 ◽  
Author(s):  
Garrett N. Vande Kamp
Keyword(s):  
Monte Carlo ◽  
Measurement Error ◽  
Panel Data ◽  
Regression Models ◽  
Spatial Regression ◽  
Spatial Weights ◽  
The Core ◽  
Spatial Weights Matrix ◽  
Spatial Regression Models ◽  
And Control

While the spatial weights matrix $\boldsymbol{W}$ is at the core of spatial regression models, there is a scarcity of techniques for validating a given specification of $\boldsymbol{W}$. I approach this problem from a measurement error perspective. When $\boldsymbol{W}$ is inflated by a constant, a predictable form of endogeneity occurs that is not problematic in other regression contexts. I use this insight to construct a theoretically appealing test and control for the validity of $\boldsymbol{W}$ that is tractable in panel data, which I call the K test. I demonstrate the utility of the test using Monte Carlo simulations.

Irrigation Water Valuation Using Spatial Hedonic Models in GIS Environment

2012 ◽  
pp. 308-320
Author(s):  
Zisis Mallios
Keyword(s):  
Irrigation Water ◽  
Regression Models ◽  
Spatial Regression ◽  
Hedonic Pricing ◽  
Spatial Lag Model ◽  
Hedonic Pricing Method ◽  
Spatial Weights Matrix ◽  
Spatial Regression Models ◽  
Gis Environment ◽  
Value Of Irrigation Water

Hedonic pricing is an indirect valuation method that applies to heterogeneous goods investigating the relationship between the prices of tradable goods and their attributes. It can be used to measure the value of irrigation water through the estimation of the model that describes the relation between the market value of the land parcels and its characteristics. Because many of the land parcels included in a hedonic pricing model are spatial in nature, the conventional regression analysis fails to incorporate all the available information. Spatial regression models can achieve more efficient estimates because they are designed to deal with the spatial dependence of the data. In this paper, the authors present the results of an application of the hedonic pricing method on irrigation water valuation obtained using a software tool that is developed for the ArcGIS environment. This tool incorporates, in the GIS application, the estimation of two different spatial regression models, the spatial lag model and the spatial error model. It also has the option for different specifications of the spatial weights matrix, giving the researcher the opportunity to examine how it affects the overall performance of the model.

Irrigation Water Valuation Using Spatial Hedonic Models in GIS Environment

2010 ◽  
Vol 1 (4) ◽  
pp. 1-13 ◽  
Author(s):  
Zisis Mallios
Keyword(s):  
Irrigation Water ◽  
Regression Models ◽  
Spatial Regression ◽  
Software Tool ◽  
Hedonic Pricing ◽  
Spatial Error ◽  
Spatial Lag Model ◽  
Spatial Weights Matrix ◽  
Lag Model ◽  
Spatial Regression Models

Hedonic pricing is an indirect valuation method that applies to heterogeneous goods investigating the relationship between the prices of tradable goods and their attributes. It can be used to measure the value of irrigation water through the estimation of the model that describes the relation between the market value of the land parcels and its characteristics. Because many of the land parcels included in a hedonic pricing model are spatial in nature, the conventional regression analysis fails to incorporate all the available information. Spatial regression models can achieve more efficient estimates because they are designed to deal with the spatial dependence of the data. In this paper, the authors present the results of an application of the hedonic pricing method on irrigation water valuation obtained using a software tool that is developed for the ArcGIS environment. This tool incorporates, in the GIS application, the estimation of two different spatial regression models, the spatial lag model and the spatial error model. It also has the option for different specifications of the spatial weights matrix, giving the researcher the opportunity to examine how it affects the overall performance of the model.

scholarly journals Spatial Regression Models: A Systematic Comparison of Different Model Specifications Using Monte Carlo Experiments

2019 ◽  
pp. 004912411988246 ◽  
Author(s):  
Tobias Rüttenauer
Keyword(s):  
Monte Carlo ◽  
Spatial Data ◽  
Regression Models ◽  
Spatial Regression ◽  
Spillover Effects ◽  
Spatial Error ◽  
Monte Carlo Experiments ◽  
Spatial Autoregressive ◽  
Spatial Regression Models ◽  
Variable Bias

Spatial regression models provide the opportunity to analyze spatial data and spatial processes. Yet, several model specifications can be used, all assuming different types of spatial dependence. This study summarizes the most commonly used spatial regression models and offers a comparison of their performance by using Monte Carlo experiments. In contrast to previous simulations, this study evaluates the bias of the impacts rather than the regression coefficients and additionally provides results for situations with a nonspatial omitted variable bias. Results reveal that the most commonly used spatial autoregressive and spatial error specifications yield severe drawbacks. In contrast, spatial Durbin specifications (SDM and SDEM) and the simple spatial lag of X (SLX) provide accurate estimates of direct impacts even in the case of misspecification. Regarding the indirect “spillover” effects, several—quite realistic—situations exist in which the SLX outperforms the more complex SDM and SDEM specifications.

USE OF SPATIAL AUTOCORRELATION TO BUILD REGRESSION MODELS OF TRANSACTION PRICES

2013 ◽  
Vol 21 (4) ◽  
pp. 65-74 ◽  
Author(s):  
Radosław Cellmer
Keyword(s):  
Spatial Autocorrelation ◽  
Regression Models ◽  
Spatial Regression ◽  
Research Work ◽  
Property Market ◽  
Spatial Error ◽  
Spatial Lag Model ◽  
Spatial Weights Matrix ◽  
Lag Model ◽  
Spatial Regression Models

Abstract This paper presents the principles of studying global spatial autocorrelation in the land property market, as well as the possibilities of using these regularities for the construction of spatial regression models. Research work consisted primarily of testing the structure of the spatial weights matrix using different criteria and conducting diagnostic tests of two types of models: the spatial error model and the spatial lag model. The paper formulates the hypothesis that the application of spatial regression models greatly increases the accuracy of transaction price prediction while forming the basis for the creation of cartographic documents including, among others, maps of land value.

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