Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Accounting for Spatial Heterogeneity and Autocorrelation in Spatial Discrete Choice Models: Implications for Behavioral Predictions

Accounting for Spatial Heterogeneity and Autocorrelation in Spatial Discrete Choice Models:... Abstract: The random utility model (RUM) is commonly used in the land-use and fishery economics literature. This research investigates the affect that spatial heterogeneity and spatial autocorrelation have within the RUM framework using alternative specifications of the multinomial logit, multinomial probit, and spatial multinomial probit models. Using data on the spatial decisions of fishermen, the results illustrate that ignoring spatial heterogeneity in the unobservable portion of the RUM dramatically affects model performance and welfare estimates. Furthermore, accounting for spatial autocorrelation in addition to spatial heterogeneity increases the performance of the RUM. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Land Economics University of Wisconsin Press

Accounting for Spatial Heterogeneity and Autocorrelation in Spatial Discrete Choice Models: Implications for Behavioral Predictions

Land Economics , Volume 87 (3) – Apr 4, 2011

Loading next page...
 
/lp/university-of-wisconsin-press/accounting-for-spatial-heterogeneity-and-autocorrelation-in-spatial-WWXmahq4px
Publisher
University of Wisconsin Press
Copyright
Copyright © University of Wisconsin Press
ISSN
1543-8325
Publisher site
See Article on Publisher Site

Abstract

Abstract: The random utility model (RUM) is commonly used in the land-use and fishery economics literature. This research investigates the affect that spatial heterogeneity and spatial autocorrelation have within the RUM framework using alternative specifications of the multinomial logit, multinomial probit, and spatial multinomial probit models. Using data on the spatial decisions of fishermen, the results illustrate that ignoring spatial heterogeneity in the unobservable portion of the RUM dramatically affects model performance and welfare estimates. Furthermore, accounting for spatial autocorrelation in addition to spatial heterogeneity increases the performance of the RUM.

Journal

Land EconomicsUniversity of Wisconsin Press

Published: Apr 4, 2011

There are no references for this article.