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An Assessment Of Workarounds For Spatial Effects In The Case Of Binary Probit

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  • Robertson, Richard D.
  • Nelson, Gerald C.

Abstract

The consequences of spatial effects on discrete choice models have not been well established. Various ad hoc workarounds have been proposed to mitigate potential estimation problems. This paper employs Monte Carlo simulation to investigate the severity of the problems introduced by spatial effects and the effectiveness of the workarounds.

Suggested Citation

  • Robertson, Richard D. & Nelson, Gerald C., 2004. "An Assessment Of Workarounds For Spatial Effects In The Case Of Binary Probit," 2004 Annual meeting, August 1-4, Denver, CO 20234, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea04:20234
    DOI: 10.22004/ag.econ.20234
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    File URL: https://ageconsearch.umn.edu/record/20234/files/spo4pr01.pdf
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    References listed on IDEAS

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    1. Chomitz, Kenneth M & Gray, David A, 1996. "Roads, Land Use, and Deforestation: A Spatial Model Applied to Belize," The World Bank Economic Review, World Bank, vol. 10(3), pages 487-512, September.
    2. Gerald C. Nelson & Daniel Hellerstein, 1997. "Do Roads Cause Deforestation? Using Satellite Images in Econometric Analysis of Land Use," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 80-88.
    3. H. Kelejian, Harry & Prucha, Ingmar R., 2001. "On the asymptotic distribution of the Moran I test statistic with applications," Journal of Econometrics, Elsevier, vol. 104(2), pages 219-257, September.
    4. Staal, S. J. & Baltenweck, I. & Waithaka, M. M. & deWolff, T. & Njoroge, L., 2002. "Location and uptake: integrated household and GIS analysis of technology adoption and land use, with application to smallholder dairy farms in Kenya," Agricultural Economics, Blackwell, vol. 27(3), pages 295-315, November.
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    Cited by:

    1. Levente Tímár, 2011. "Rural Land Use and Land Tenure in New Zealand," Working Papers 11_13, Motu Economic and Public Policy Research.
    2. Alessandro De Pinto & Gerald C. Nelson, 2007. "Modelling Deforestation and Land‐Use Change: Sparse Data Environments," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(3), pages 502-516, September.

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