scholarly journals Spatial heterogeneity and spatial bias analyses in hedonic price models: some practical considerations

2015 ◽  
Vol 28 (28) ◽  
pp. 113-128 ◽  
Author(s):  
Haniza Khalid

Abstract A great number of contemporary studies are incorporating explicit consideration of spatial effects in the estimation of hedonic price functions. At the most basic level, interactive spatial regime models are employed to detect the presence of spatial heterogeneity in datasets. A full-scale spatial analysis would include determination and adjustments for spatial lag and spatial error dependences. However, there is still plenty of room for future research to help unravel the numerous modelling and practical issues associated with a comprehensive spatial examination, such as the specification of the spatial dependence structure or functional ‘neighbourhoods’. Another important issue relates to the use of spatial multipliers to filter spatial bias particularly in models which use log-transformed variables. Estimation of a hedonic price function using Malaysian dataset of agricultural land sale values indicates spatial disaggregation and spatial dependence. However, diagnostic tests and actual estimation of spatial models do not always provide unambiguous conclusions while predicted errors do not vary all that much from those generated by simpler models. Despite the conceptual appeal of spatial analyses, the inefficiency attributable to spatial biases may not be large enough to cause critical errors in policy decisions.

2018 ◽  
Vol 42 (2) ◽  
Author(s):  
Luiz Moreira Coelho Junior ◽  
Kalyne de Lourdes da Costa Martins ◽  
Magno Vamberto Batista da Silva

ABSTRACT This paper analyzed the process of convergence in the gross value of wood production in mesoregions of Northeast Brazil, in the period of 1994 and 2013. The object of study was the Gross Value of Production (GVP) of firewood per km2 of the mesoregions of the Northeast of Brazil. In the methodology the Absolute Convergence Model was applied and estimated through the classical model and spatial models. In the spatial approach we used the Spatial Autoregressive Model (SAR) and the Spatial Error Model (SEM). From the results obtained, the following conclusions were reached: The mesoregions of the Northeast of Brazil had an average fall of 3.94% a.a. of the GVP/km2 of native wood for the period 1994 to 2013. Considering the classical linear regression model, convergence was verified and also the presence of spatial dependence for GVP/km2 of firewood. In order to correct the spatial dependence, the SAR and SEM Models were adequate and according to Akaike's Information Criterion and used the rook matrix the SEM was configured the best model. This study showed the importance of the involvement of the spatial question in the models, either by the overlap of information of the GVP and in the development of public policies that positively affect the neighborhood.


Info ◽  
2015 ◽  
Vol 17 (5) ◽  
pp. 46-65 ◽  
Author(s):  
Maria Veronica Alderete

Purpose – This paper aims to determine if there is a spatial dependence in the entrepreneurial activity among countries. The existence of a “digital proximity” could explain the spatial pattern of entrepreneurship. Design/methodology/approach – This question is empirically addressed by using a five-period, 2008-2012, panel data for 35 countries. A spatial fixed effects panel data model is estimated by using the total entrepreneurial activity published by the global entrepreneurship monitor as the dependent variable. Findings – A significant negative influence of the digital proximity on the entrepreneurial activity is observed. Mobile broadband (MB) direct effect is positive while the indirect effect (the spatial spillovers) is negative, leading to a negative total effect on the total entrepreneurial activity. This result is contrary to non-spatial models’ results. Besides, a higher MB penetration in a country would lead to a competitive advantage fostering its opportunities for entrepreneurship, but reducing those of its neighbours’. Originality/value – This paper examines the relationship between information and communication technology (ICT) and entrepreneurship, by introducing the spatial effects is the main contribution. This paper expands the scant literature on the ICT impact on entrepreneurship. Results obtained support policies towards enforcing innovation, education and reducing entry regulations for encouraging entrepreneurship. Meanwhile, MB policies could counteract the entrepreneurial policies’ results due to the spatial dependence.


2020 ◽  
Vol 10 (1) ◽  
Author(s):  
Prince M. Amegbor ◽  
Zhaoxi Zhang ◽  
Rikke Dalgaard ◽  
Clive E. Sabel

AbstractIn this study, we examine the concepts of spatial dependence and spatial heterogeneity in the effect of macro-level and micro-level factors on stunting among children aged under five in Uganda. We conducted a cross-sectional analysis of 3624 Ugandan children aged under five, using data from the 2016 Ugandan Demographic and Health Survey. Multilevel mixed-effect analysis, spatial regression methods and multi-scale geographically weight regression (MGWR) analysis were employed to examine the association between our predictors and stunting as well as to analyse spatial dependence and variability in the association. Approximately 28% of children were stunted. In the multilevel analysis, the effect of drought, diurnal temperature and livestock per km2 on stunting was modified by child, parent and household factors. Likewise, the contextual factors had a modifiable effect on the association between child’s sex, mother’s education and stunting. The results of the spatial regression models indicate a significant spatial error dependence in the residuals. The MGWR suggests rainfall and diurnal temperature had spatial varying associations with stunting. The spatial heterogeneity of rainfall and diurnal temperature as predictors of stunting suggest some areas in Uganda might be more sensitive to variability in these climatic conditions in relation to stunting than others.


2021 ◽  
Vol 51 (12) ◽  
Author(s):  
Antônia Silânia de Andrade ◽  
Madson Tavares Silva ◽  
Edivaldo Afonso de Oliveira Serrão ◽  
Vicente de Paulo Rodrigues da Silva ◽  
Enilson Palmeira Cavalcanti ◽  
...  

ABSTRACT: This study evaluated the variability and characterizedthe spatial dependence between some soil attributes in the Eastern Cariri microregion of Paraíba,and analyzed the spatial correlations in order to identify the interactions between such attributes in cowpea bean(Vigna unguiculata L. Walp)production. Harvest data of the agricultural years of 2000-2017 in the Eastern Cariri microregion of Paraíba were analyzed. Parameters of the fitted models wereestimated using the Maximum Likelihood method and the performance of the models was evaluated based on coefficients of determination(R2), maximum log-likelihood function, and Schwarz’s Bayesian information criterion (BIC). Correlation and spatial autocorrelation between the cowpea productivity and agrometeorological elements was detected through the spatial analysis, using techniques such as the Moran’s index I. The study showed that, according to the performance indicators used, the spatial error model offered better results in relation to the classical multiple regression models and the self-regressive spatial models, indicating that the inclusion of spatial dependence in the models improves the estimate of productivity of cowpea in the microregion of Cariri Oriental da Paraíba.


Author(s):  
Samson Y. Gebreab

Most studies evaluating relationships between neighborhood characteristics and health neglect to examine and account for the spatial dependency across neighborhoods, that is, how neighboring areas are related to each other, although the possible presence of spatial effects (e.g., spatial dependency, spatial heterogeneity) can potentially influence the results in substantial ways. This chapter first discusses the concept of spatial autocorrelation and then provides an overview of different spatial clustering methods, including Moran’s I and spatial scan statistics as well as different models to map spatial data, for example, spatial Bayesian mapping. Next, this chapter discusses various spatial regression methods used in spatial epidemiology for accounting spatial dependency and/or spatial heterogeneity in modeling the relationships between neighborhood characteristics and health outcomes, including spatial econometric models, Bayesian spatial models, and multilevel spatial models.


2016 ◽  
Vol 9 (4) ◽  
pp. 627-647 ◽  
Author(s):  
David McIlhatton ◽  
William McGreal ◽  
Paloma Taltavul de la Paz ◽  
Alastair Adair

Purpose There is a lack of understanding in the literature on the spatial relationships between crime and house price. This paper aims to test the impact of spatial effects in the housing market, how these are related to the incidence of crime and whether effects vary by the type of crime. Design/methodology/approach The analysis initially explores univariate and bivariate spatial patterns in crime and house price data for the Belfast Metropolitan Area using Moran’s I and Local Indicator Spatial Association (LISA) models, and secondly uses spatial autoregression models to estimate the role of crime on house prices. A spatially weighted two-stage least-squares model is specified to analyse the joint impact of crime variables. The analysis is cross sectional, based on a panel of data. Findings The paper illustrates that the pricing impact of crime is complex and varies by type of crime, property type and location. It is shown that burglary and theft are associated with higher-income neighbourhoods, whereas violence against persons, criminal damage and drugs offences are mainly associated with lower-priced neighbourhoods. Spatial error effects are reduced in models based on specific crime variables. Originality/value The originality of this paper is the application of spatial analysis in the study of the impact of crime upon house prices. Criticisms of hedonic price models are based on unexplained error effects; the significance of this paper is the reduction of spatial error effects achievable through the analysis of crime data.


2020 ◽  
pp. 133-158
Author(s):  
K. A. Kholodilin ◽  
Y. I. Yanzhimaeva

A relative uniformity of population distribution on the territory of the country is of importance from socio-economic and strategic perspectives. It is especially important in the case of Russia with its densely populated West and underpopulated East. This paper considers changes in population density in Russian regions, which occurred between 1897 and 2017. It explores whether there was convergence in population density and what factors influenced it. For this purpose, it uses the data both at county and regional levels, which are brought to common borders for comparability purposes. Further, the models of unconditional and conditional β-convergence are estimated, taking into account the spatial dependence. The paper concludes that the population density equalization took place in 1897-2017 at the county level and in 1926—1970 at the regional level. In addition, the population density increase is shown to be influenced not only by spatial effects, but also by political and geographical factors such as climate, number of GULAG camps, and the distance from the capital city.


Energies ◽  
2021 ◽  
Vol 14 (13) ◽  
pp. 3802
Author(s):  
Marta Ewa Kuc-Czarnecka ◽  
Magdalena Olczyk ◽  
Marek Zinecker

This article aims to improve one of the newest energy transition measures—the World Economic Forum WEF Energy Transition Index (ETI) and find its driving forces. This paper proposes a new approach to correct the ETI structure, i.e., sensitivity analysis, which allows assessing the accuracy of variable weights. Moreover, the novelty of the paper is the use the spatial error models to estimate determinants of the energy transition on different continents. The results show that ETI is unbalanced and includes many variables of marginal importance for the shape of the final ranking. The variables with the highest weights in ETI did not turn out to be its most important determinants, which means that they differentiate the analysed countries well; nonetheless, they do not have sufficient properties of approximating the values of the ETI components. The most important components of ETI (with the highest information load) belong to the CO2 emissions per capita, the innovative business environment, household electricity prices, or renewable capacity buildout. Moreover, we identified the clustering of both ETI and its two main pillars in Europe, which is not observed in America and Asia. The identified positive spatial effects showing that European countries need much deeper cooperation to reach a successful energy transition.


Mathematics ◽  
2021 ◽  
Vol 9 (3) ◽  
pp. 245
Author(s):  
Pablo Ponce ◽  
José Álvarez-García ◽  
Mary Cumbicus ◽  
María de la Cruz del Río-Rama

The aim of this research is to analyse the effect of income inequality on the homicide rate. The study is carried out in 18 Latin American countries for the period 2005–2018. The methodology used is the Generalized Least Squares (GLS) model and the data were obtained from World Development Indicators, the World Health Organization and the Inter-American Development Bank. Thus, the dependent variable is the homicide rate and the independent variable is income inequality. In addition, some control variables are included, such as: poverty, urban population rate, unemployment, schooling rate, spending on security and GDP per capita, which improve the consistency of the model. The results obtained through GLS model determine that inequality has a negative and significant effect on the homicide rate for high-income countries (HIC) and lower-middle-income countries (LMIC), whereas it is positive and significant for upper-middle-income countries (UMIC). On the other hand, the control variables show different results by group of countries. In the case of unemployment, it is not significant in any group of countries. Negative spatial dependence was found regarding spatial models such as: the spatial lag (SAR) and spatial error (SEM) method. In the spatial Durbin model (SDM), positive spatial dependence between the variables was corroborated. However, spatial auto-regressive moving average (SARMA) identified no spatial dependence. Under these results it is proposed: to improve productivity, education and improve the efficiency of security-oriented resources.


2014 ◽  
Vol 8 ◽  
pp. 20-38 ◽  
Author(s):  
Rikke Ingebrigtsen ◽  
Finn Lindgren ◽  
Ingelin Steinsland

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