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Investigating the predictive capabilities of discrete choice models in the presence of spatial effects

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  • Richard D. Robertson
  • Gerald C. Nelson
  • Alessandro De Pinto

Abstract

Fully spatial treatments of discrete choice models are difficult to specify and can be computationally intense. Several "ad hoc" procedures have been proposed in the land use literature to mitigate the potential estimation problems caused by spatial effects. We investigate the consequences of different spatial effects for several of these non-fully-spatial approaches using Monte Carlo simulation of a binary choice and a real world example of land use on the island of Sumatra in Indonesia. We find that there are few effects on categorical prediction and that inclusion of spatially lagged explanatory variables is the most effective procedure. Copyright (c) 2009 the author(s). Journal compilation (c) 2009 RSAI.

Suggested Citation

  • Richard D. Robertson & Gerald C. Nelson & Alessandro De Pinto, 2009. "Investigating the predictive capabilities of discrete choice models in the presence of spatial effects," Papers in Regional Science, Wiley Blackwell, vol. 88(2), pages 367-388, June.
  • Handle: RePEc:bla:presci:v:88:y:2009:i:2:p:367-388
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    Cited by:

    1. Manuel Ruiz & Fernando López & Antonio Páez, 2010. "Testing for spatial association of qualitative data using symbolic dynamics," Journal of Geographical Systems, Springer, vol. 12(3), pages 281-309, September.
    2. T. Randall Fortenbery & Steven C. Deller & Lindsay Amiel, 2013. "The Location Decisions of Biodiesel Refineries," Land Economics, University of Wisconsin Press, vol. 89(1), pages 118-136.
    3. Michael Brady & Elena Irwin, 2011. "Accounting for Spatial Effects in Economic Models of Land Use: Recent Developments and Challenges Ahead," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 48(3), pages 487-509, March.
    4. Levente Tímár, 2011. "Rural Land Use and Land Tenure in New Zealand," Working Papers 11_13, Motu Economic and Public Policy Research.
    5. JunJie Wu & Monica Fisher & Unai Pascual, 2011. "Urbanization and the Viability of Local Agricultural Economies," Land Economics, University of Wisconsin Press, vol. 87(1), pages 109-125.

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