Modeling spatial discrete choice
AbstractThe paper presents a basic spatial discrete choice modeling framework obtained by applying random utility theory to discrete choices made by heterogeneous spatially dependent individuals. The newly developed framework has two main advantages over existing approaches. First, individual decision-makers are no longer assumed to be independent and non-interacting but spatially interdependent in their preferences facilitating the development of applied discrete choice models using a wide range of spatial data. Second, pseudo maximum likelihood estimator is developed for this model that is consistent and computationally feasible for large datasets. The performance of the pseudo maximum likelihood estimator for the spatial discrete choice model is illustrated using simulated data.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal Regional Science and Urban Economics.
Volume (Year): 40 (2010)
Issue (Month): 5 (September)
Contact details of provider:
Web page: http://www.elsevier.com/locate/regec
Spatial interdependence Discrete choice Maximum likelihood Spatial random utility;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Case, Anne, 1992. "Neighborhood influence and technological change," Regional Science and Urban Economics, Elsevier, vol. 22(3), pages 491-508, September.
- Kenneth Train, 2003.
"Discrete Choice Methods with Simulation,"
Online economics textbooks,
SUNY-Oswego, Department of Economics, number emetr2, Spring.
- Bhat, Chandra R. & Guo, Jessica, 2004. "A mixed spatially correlated logit model: formulation and application to residential choice modeling," Transportation Research Part B: Methodological, Elsevier, vol. 38(2), pages 147-168, February.
- Murdoch, James C. & Sandler, Todd & Vijverberg, Wim P. M., 2003. "The participation decision versus the level of participation in an environmental treaty: a spatial probit analysis," Journal of Public Economics, Elsevier, vol. 87(2), pages 337-362, February.
- Pinkse, Joris & Slade, Margaret E., 1998. "Contracting in space: An application of spatial statistics to discrete-choice models," Journal of Econometrics, Elsevier, vol. 85(1), pages 125-154, July.
- Koppelman, Frank S. & Sethi, Vaneet, 2005. "Incorporating variance and covariance heterogeneity in the Generalized Nested Logit model: an application to modeling long distance travel choice behavior," Transportation Research Part B: Methodological, Elsevier, vol. 39(9), pages 825-853, November.
- Brock,W.A. & Durlauf,S.N., 2004.
"Identification of binary choice models with social interactions,"
2, Wisconsin Madison - Social Systems.
- Brock, William A. & Durlauf, Steven N., 2007. "Identification of binary choice models with social interactions," Journal of Econometrics, Elsevier, vol. 140(1), pages 52-75, September.
- Joan Walker & Jieping Li, 2007. "Latent lifestyle preferences and household location decisions," Journal of Geographical Systems, Springer, vol. 9(1), pages 77-101, April.
- Iglesias, Emma M. & Phillips, Garry D.A., 2008. "Asymptotic bias of GMM and GEL under possible nonstationary spatial dependence," Economics Letters, Elsevier, vol. 99(2), pages 393-397, May.
- Jordan Louviere, 2006. "What You Don’t Know Might Hurt You: Some Unresolved Issues in the Design and Analysis of Discrete Choice Experiments," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 34(1), pages 173-188, 05.
- Bryan S. Graham, 2008. "Identifying Social Interactions Through Conditional Variance Restrictions," Econometrica, Econometric Society, vol. 76(3), pages 643-660, 05.
- Victor Aguirregabiria & Pedro Mira, 2004.
"Sequential Estimation of Dynamic Discrete Games,"
- Anselin, Luc, 2002. "Under the hood : Issues in the specification and interpretation of spatial regression models," Agricultural Economics, Blackwell, vol. 27(3), pages 247-267, November.
- H�vard Rue, 2001. "Fast sampling of Gaussian Markov random fields," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 63(2), pages 325-338.
- Conley, Timothy G. & Topa, Giorgio, 2007. "Estimating dynamic local interactions models," Journal of Econometrics, Elsevier, vol. 140(1), pages 282-303, September.
- Smirnov, Oleg A. & Anselin, Luc E., 2009. "An O(N) parallel method of computing the Log-Jacobian of the variable transformation for models with spatial interaction on a lattice," Computational Statistics & Data Analysis, Elsevier, vol. 53(8), pages 2980-2988, June.
- Anselin, Luc, 2002. "Under the hood Issues in the specification and interpretation of spatial regression models," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 27(3), November.
- Jordan Louviere & Kenneth Train & Moshe Ben-Akiva & Chandra Bhat & David Brownstone & Trudy Cameron & Richard Carson & J. Deshazo & Denzil Fiebig & William Greene & David Hensher & Donald Waldman, 2005. "Recent Progress on Endogeneity in Choice Modeling," Marketing Letters, Springer, vol. 16(3), pages 255-265, December.
- Elenna R Dugundji & L�szl� Guly�s, 2008. "Sociodynamic discrete choice on networks in space: impacts of agent heterogeneity on emergent outcomes," Environment and Planning B: Planning and Design, Pion Ltd, London, vol. 35(6), pages 1028-1054, November.
- Brock, William A & Durlauf, Steven N, 2001.
"Discrete Choice with Social Interactions,"
Review of Economic Studies,
Wiley Blackwell, vol. 68(2), pages 235-60, April.
- Joris Pinkse & Margaret Slade & Lihong Shen, 2006. "Dynamic Spatial Discrete Choice Using One-step GMM: An Application to Mine Operating Decisions," Spatial Economic Analysis, Taylor & Francis Journals, vol. 1(1), pages 53-99.
- Antonio P�ez & Darren M Scott, 2007. "Social influence on travel behavior: a simulation example of the decision to telecommute," Environment and Planning A, Pion Ltd, London, vol. 39(3), pages 647-665, March.
- Lung-Fei Lee, 2004. "Asymptotic Distributions of Quasi-Maximum Likelihood Estimators for Spatial Autoregressive Models," Econometrica, Econometric Society, vol. 72(6), pages 1899-1925, November.
- Dipankar Chakravarti & Atanu Sinha & Jaewhan Kim, 2005. "Choice Research: A Wealth of Perspectives," Marketing Letters, Springer, vol. 16(3), pages 173-182, December.
- Charles F. Manski, 2004. "Measuring Expectations," Econometrica, Econometric Society, vol. 72(5), pages 1329-1376, 09.
- Antonio P�ez & Darren M Scott & Erik Volz, 2008. "A discrete-choice approach to modeling social influence on individual decision making," Environment and Planning B: Planning and Design, Pion Ltd, London, vol. 35(6), pages 1055-1069, November.
- Bekhor, Shlomo & Prashker, Joseph N., 2008. "GEV-based destination choice models that account for unobserved similarities among alternatives," Transportation Research Part B: Methodological, Elsevier, vol. 42(3), pages 243-262, March.
- Luo, Shali & Miller, J. Isaac, 2014.
"On the spatial correlation of international conflict initiation and other binary and dyadic dependent variables,"
Regional Science and Urban Economics,
Elsevier, vol. 44(C), pages 107-118.
- Shali Luo & J. Isaac Miller, 2013. "On the Spatial Correlation of International Conflict Initiation and Other Binary and Dyadic Dependent Variables," Working Papers 1306, Department of Economics, University of Missouri.
- Qu, Xi & Lee, Lung-fei, 2012. "LM tests for spatial correlation in spatial models with limited dependent variables," Regional Science and Urban Economics, Elsevier, vol. 42(3), pages 430-445.
- Smirnov, Oleg A. & Egan, Kevin J., 2012. "Spatial random utility model with an application to recreation demand," Economic Modelling, Elsevier, vol. 29(1), pages 72-78.
- Jacobs, Jan & Samarina, Anna & Heijnen, Pim & Elhorst, Paul, 2013. "State transfers at different moments in time: A spatial probit approach," Research Report 13006-EEF, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
- Jean-Sauveur Ay & Raja Chakir & Julie Le Gallo, 2014. "The effects of scale, space and time on the predictive accuracy of land use models," Working Papers 2014/02, INRA, Economie Publique.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.