Ecological Inference And Spatial Heterogeneity - A New Approach Based On Entropy Econometrics
In this paper, we compare the results obtained by the application of three alternative methods of ecological inference. The data is on per capita household disposable income in the 50 provinces and 78 municipalities of Asturias, Spain. The first method is based on Ordinary Least Squares regression model, which assumes constancy or homogeneity. The second method is based on a spatial autocorrelation model, which assumes heterogeneity in two spatial regimes. The third method is based on a varying-coefficients model, which assumes total heterogeneity. The second model is estimated by Maximum Likelihood, whereas the latter is estimated by using Generalized Maximum or Cross Entropy.
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