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Empirical Hierarchical Modelling for Count Data using the Spatial Random Effects Model

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  • Aritra Sengupta
  • Noel Cressie

Abstract

Count data over spatial lattices are the building blocks of spatial econometric data (e.g. unemployment rates in small areas). We consider a hierarchical statistical model made up of a Poisson model for the counts and an underlying Spatial Random Effects process for the logarithm of the mean of the Poisson distribution. The resulting dimension reduction leads to substantial computational speed-ups. These models make no assumptions of homogeneity, stationarity, or isotropy. We develop maximum-likelihood estimates (MLEs) for the parameters of the underlying process using an EM algorithm, and we predict unknown mean counts over the entire spatial lattice.

Suggested Citation

  • Aritra Sengupta & Noel Cressie, 2013. "Empirical Hierarchical Modelling for Count Data using the Spatial Random Effects Model," Spatial Economic Analysis, Taylor & Francis Journals, vol. 8(3), pages 389-418, September.
    • Handle: RePEc:taf:specan:v:8:y:2013:i:3:p:389-418
    DOI: 10.1080/17421772.2012.760135
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    Cited by:

    1. Daniel H. Weinberg & John M. Abowd & Robert F. Belli & Noel Cressie & David C. Folch & Scott H. Holan & Margaret C. Levenstein & Kristen M. Olson & Jerome P. Reiter & Matthew D. Shapiro & Jolene Smyth, 2017. "Effects of a Government-Academic Partnership: Has the NSF-Census Bureau Research Network Helped Improve the U.S. Statistical System?," Working Papers 17-59r, Center for Economic Studies, U.S. Census Bureau.
    2. Isabel Proença & Ludgero Glórias, 2021. "Revisiting the Spatial Autoregressive Exponential Model for Counts and Other Nonnegative Variables, with Application to the Knowledge Production Function," Sustainability, MDPI, vol. 13(5), pages 1-22, March.
    3. Sandy Burden & Noel Cressie & David G. Steel, 2015. "The SAR Model for Very Large Datasets: A Reduced Rank Approach," Econometrics, MDPI, vol. 3(2), pages 1-22, May.

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