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The inversion of the spatial lag operator in binary choice models: Fast computation and a closed formula approximation

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Resumo:This paper presents a new method to approximate the inverse of the spatial lag operator, used in the estimation of spatial lag models for binary dependent variables. The related matrix operations are approximated as well. Closed formulas for the elements of the approximated matrices are deduced. A GMM estimator is also presented. This estimator is a variant of Klier and McMillen’s iterative GMM estimator. The approximated matrices are used in the gradients of the new iterative GMM procedure. Monte Carlo experiments suggest that the proposed approximation is accurate and allows to significantly reduce the computational complexity, and consequently the computational time, associated with the estimation of spatial binary choice models, especially for the case where the spatial weighting matrix is large and dense. Also, the simulation experiments suggest that the proposed iterative GMM estimator performs well in terms of bias and root mean square error and exhibits a minimum trade-off between computational time and unbiasedness within a class of spatial GMM estimators. Finally, the new iterative GMM estimator is applied to the analysis of competitiveness in the U.S. Metropolitan Statistical Areas. A new definition for binary competitiveness is introduced. The estimation of spatial and environmental effects are addressed as central issues.
Autores principais:Santos, Luís Silveira
Outros Autores:Proença, Isabel
Assunto:Matrix Approximation Matrix Factorization Spatial Binary Choice Model Spatial Lag Operator Inverse Competitiveness Environmental Effects
Ano:2019
País:Portugal
Tipo de documento:artigo
Tipo de acesso:acesso aberto
Instituição associada:Universidade de Lisboa
Idioma:inglês
Origem:Repositório da Universidade de Lisboa
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author Santos, Luís Silveira
author2 Proença, Isabel
author2_role author
author_facet Santos, Luís Silveira
Proença, Isabel
author_role author
contributor_name_str_mv Repositório Científico de Acesso Aberto da ULisboa
country_str PT
creators_json_txt [{\"Person.name\":\"Santos, Luís Silveira\"},{\"Person.name\":\"Proença, Isabel\"}]
datacite.contributors.contributor.contributorName.fl_str_mv Repositório Científico de Acesso Aberto da ULisboa
datacite.creators.creator.creatorName.fl_str_mv Santos, Luís Silveira
Proença, Isabel
datacite.date.Accepted.fl_str_mv 2019-01-01T00:00:00Z
datacite.date.available.fl_str_mv 2023-08-03T18:16:53Z
datacite.date.embargoed.fl_str_mv 2023-08-03T18:16:53Z
datacite.rights.fl_str_mv http://purl.org/coar/access_right/c_abf2
datacite.subjects.subject.fl_str_mv Matrix Approximation
Matrix Factorization
Spatial Binary Choice Model
Spatial Lag Operator Inverse
Competitiveness
Environmental Effects
datacite.titles.title.fl_str_mv The inversion of the spatial lag operator in binary choice models: Fast computation and a closed formula approximation
dc.contributor.none.fl_str_mv Repositório Científico de Acesso Aberto da ULisboa
dc.creator.none.fl_str_mv Santos, Luís Silveira
Proença, Isabel
dc.date.Accepted.fl_str_mv 2019-01-01T00:00:00Z
dc.date.available.fl_str_mv 2023-08-03T18:16:53Z
dc.date.embargoed.fl_str_mv 2023-08-03T18:16:53Z
dc.format.none.fl_str_mv application/pdf
dc.identifier.none.fl_str_mv http://hdl.handle.net/10400.5/28080
dc.language.none.fl_str_mv eng
dc.publisher.none.fl_str_mv Elsevier
dc.rights.none.fl_str_mv http://purl.org/coar/access_right/c_abf2
dc.subject.none.fl_str_mv Matrix Approximation
Matrix Factorization
Spatial Binary Choice Model
Spatial Lag Operator Inverse
Competitiveness
Environmental Effects
dc.title.fl_str_mv The inversion of the spatial lag operator in binary choice models: Fast computation and a closed formula approximation
dc.type.none.fl_str_mv http://purl.org/coar/resource_type/c_6501
description This paper presents a new method to approximate the inverse of the spatial lag operator, used in the estimation of spatial lag models for binary dependent variables. The related matrix operations are approximated as well. Closed formulas for the elements of the approximated matrices are deduced. A GMM estimator is also presented. This estimator is a variant of Klier and McMillen’s iterative GMM estimator. The approximated matrices are used in the gradients of the new iterative GMM procedure. Monte Carlo experiments suggest that the proposed approximation is accurate and allows to significantly reduce the computational complexity, and consequently the computational time, associated with the estimation of spatial binary choice models, especially for the case where the spatial weighting matrix is large and dense. Also, the simulation experiments suggest that the proposed iterative GMM estimator performs well in terms of bias and root mean square error and exhibits a minimum trade-off between computational time and unbiasedness within a class of spatial GMM estimators. Finally, the new iterative GMM estimator is applied to the analysis of competitiveness in the U.S. Metropolitan Statistical Areas. A new definition for binary competitiveness is introduced. The estimation of spatial and environmental effects are addressed as central issues.
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person_str_mv Santos, Luís Silveira
Proença, Isabel
publishDate 2019
publisher.none.fl_str_mv Elsevier
reponame_str Repositório da Universidade de Lisboa
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spelling engElsevierpt_PTThis paper presents a new method to approximate the inverse of the spatial lag operator, used in the estimation of spatial lag models for binary dependent variables. The related matrix operations are approximated as well. Closed formulas for the elements of the approximated matrices are deduced. A GMM estimator is also presented. This estimator is a variant of Klier and McMillen’s iterative GMM estimator. The approximated matrices are used in the gradients of the new iterative GMM procedure. Monte Carlo experiments suggest that the proposed approximation is accurate and allows to significantly reduce the computational complexity, and consequently the computational time, associated with the estimation of spatial binary choice models, especially for the case where the spatial weighting matrix is large and dense. Also, the simulation experiments suggest that the proposed iterative GMM estimator performs well in terms of bias and root mean square error and exhibits a minimum trade-off between computational time and unbiasedness within a class of spatial GMM estimators. Finally, the new iterative GMM estimator is applied to the analysis of competitiveness in the U.S. Metropolitan Statistical Areas. A new definition for binary competitiveness is introduced. The estimation of spatial and environmental effects are addressed as central issues.application/pdfpt_PTThe inversion of the spatial lag operator in binary choice models: Fast computation and a closed formula approximationSantos, Luís SilveiraProença, IsabelHostingInstitutionOrganizationalRepositório Científico de Acesso Aberto da ULisboae-mailmailto:repositorio@reitoria.ulisboa.ptrepositorio@reitoria.ulisboa.ptISSNIsPartOf0166-0462DOIIsPartOf10.1016/j.regsciurbeco.2019.01.0032023-08-03T18:16:53Z20192019-01-01T00:00:00ZHandlehttp://hdl.handle.net/10400.5/28080http://purl.org/coar/access_right/c_abf2open accessMatrix ApproximationMatrix FactorizationSpatial Binary Choice ModelSpatial Lag Operator InverseCompetitivenessEnvironmental Effects1268150 bytesliteraturehttp://purl.org/coar/resource_type/c_6501journal articlehttp://purl.org/coar/access_right/c_abf2application/pdffulltexthttps://repositorio.ulisboa.pt/bitstreams/b54f9fcc-1b57-4e45-bef3-d3e4ce3d468e/download
spellingShingle The inversion of the spatial lag operator in binary choice models: Fast computation and a closed formula approximation
Santos, Luís Silveira
Matrix Approximation
Matrix Factorization
Spatial Binary Choice Model
Spatial Lag Operator Inverse
Competitiveness
Environmental Effects
status SINGLETON
subject.fl_str_mv Matrix Approximation
Matrix Factorization
Spatial Binary Choice Model
Spatial Lag Operator Inverse
Competitiveness
Environmental Effects
title The inversion of the spatial lag operator in binary choice models: Fast computation and a closed formula approximation
title_full The inversion of the spatial lag operator in binary choice models: Fast computation and a closed formula approximation
title_fullStr The inversion of the spatial lag operator in binary choice models: Fast computation and a closed formula approximation
title_full_unstemmed The inversion of the spatial lag operator in binary choice models: Fast computation and a closed formula approximation
title_short The inversion of the spatial lag operator in binary choice models: Fast computation and a closed formula approximation
title_sort The inversion of the spatial lag operator in binary choice models: Fast computation and a closed formula approximation
topic Matrix Approximation
Matrix Factorization
Spatial Binary Choice Model
Spatial Lag Operator Inverse
Competitiveness
Environmental Effects
topic_facet Matrix Approximation
Matrix Factorization
Spatial Binary Choice Model
Spatial Lag Operator Inverse
Competitiveness
Environmental Effects
url http://hdl.handle.net/10400.5/28080
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