Modelling and Diagnostics of Spatially Autocorrelated Counts

This paper proposes a new spatial lag regression model which addresses global spatial autocorrelation arising from cross-sectional dependence between counts. Our approach offers an intuitive interpretation of the spatial correlation parameter as a measurement of the impact of neighbouring observatio...

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Main Authors: Robert C. Jung, Stephanie Glaser
Format: Article
Language:English
Published: MDPI AG 2022-09-01
Series:Econometrics
Subjects:
Online Access:https://www.mdpi.com/2225-1146/10/3/31
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author Robert C. Jung
Stephanie Glaser
author_facet Robert C. Jung
Stephanie Glaser
author_sort Robert C. Jung
collection DOAJ
description This paper proposes a new spatial lag regression model which addresses global spatial autocorrelation arising from cross-sectional dependence between counts. Our approach offers an intuitive interpretation of the spatial correlation parameter as a measurement of the impact of neighbouring observations on the conditional expectation of the counts. It allows for flexible likelihood-based inference based on different distributional assumptions using standard numerical procedures. In addition, we advocate the use of data-coherent diagnostic tools in spatial count regression models. The application revisits a data set on the location choice of single unit start-up firms in the manufacturing industry in the US.
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spelling doaj.art-344aa3262e42476fa3eb1600de712d842023-11-23T15:54:46ZengMDPI AGEconometrics2225-11462022-09-011033110.3390/econometrics10030031Modelling and Diagnostics of Spatially Autocorrelated CountsRobert C. Jung0Stephanie Glaser1Institut für Volkswirtschaftslehre (520K), Computational Science Lab (CSL) Hohenheim, Universität Hohenheim, 70593 Stuttgart, GermanyInstitut für Volkswirtschaftslehre (520K), Universität Hohenheim, 70593 Stuttgart, GermanyThis paper proposes a new spatial lag regression model which addresses global spatial autocorrelation arising from cross-sectional dependence between counts. Our approach offers an intuitive interpretation of the spatial correlation parameter as a measurement of the impact of neighbouring observations on the conditional expectation of the counts. It allows for flexible likelihood-based inference based on different distributional assumptions using standard numerical procedures. In addition, we advocate the use of data-coherent diagnostic tools in spatial count regression models. The application revisits a data set on the location choice of single unit start-up firms in the manufacturing industry in the US.https://www.mdpi.com/2225-1146/10/3/31count data modelsspatial econometricsspatial autocorrelationfirm location choice
spellingShingle Robert C. Jung
Stephanie Glaser
Modelling and Diagnostics of Spatially Autocorrelated Counts
Econometrics
count data models
spatial econometrics
spatial autocorrelation
firm location choice
title Modelling and Diagnostics of Spatially Autocorrelated Counts
title_full Modelling and Diagnostics of Spatially Autocorrelated Counts
title_fullStr Modelling and Diagnostics of Spatially Autocorrelated Counts
title_full_unstemmed Modelling and Diagnostics of Spatially Autocorrelated Counts
title_short Modelling and Diagnostics of Spatially Autocorrelated Counts
title_sort modelling and diagnostics of spatially autocorrelated counts
topic count data models
spatial econometrics
spatial autocorrelation
firm location choice
url https://www.mdpi.com/2225-1146/10/3/31
work_keys_str_mv AT robertcjung modellinganddiagnosticsofspatiallyautocorrelatedcounts
AT stephanieglaser modellinganddiagnosticsofspatiallyautocorrelatedcounts