Abstract
The objective of this paper is to compare the predictive accuracy of individual and aggregated econometric models of land-use choices. We argue that modeling spatial autocorrelation is a comparative advantage of aggregated models due to the smaller number of observation and the linearity of the outcome. The question is whether modeling spatial autocorrelation in aggregated models is able to provide better predictions than individual ones. We consider a complete partition of space with four land-use classes: arable, pasture, forest, and urban. We estimate and compare the predictive accuracies of individual models at the plot level (514,074 observations) and of aggregated models at a regular 12 × 12 km grid level (3,767 observations). Our results show that modeling spatial autocorrelation allows to obtain more accurate predictions at the aggregated level when the appropriate predictors are used.
Similar content being viewed by others
Explore related subjects
Discover the latest articles and news from researchers in related subjects, suggested using machine learning.Notes
2 In the following of this paper, we call spatial models those that model spatial autocorrelation explicitly. Conversely, we call aspatial models those that can include spatial effects without explicitly estimating spatial autocorrelation.
3 Other estimation procedures have also been proposed in the literature: EM method [47], the generalized method of moments [53], the method of maximum pseudo-likelihood [62], and the method composite maximum likelihood [22, 61]. For a detailed review of the inclusion of spatial autocorrelation in discrete choice models, see [23] and [62].
4 These assumptions can be relaxed in the empirical part by including interactions between explanatory variables or by specifying random coefficients.
5 For the USA, [45] makes an important data gathering effort to construct county-level returns for crops, pastures, forests and urban. The other studies use more partial information about returns, in very heterogeneous ways depending on the research questions.
6 We argue that data about land price are in general available at fine spatial scales, and it is at least true for our case study of France.
7 We have also considered two other specifications that have been proposed in the literature to deal with this problem: the fractional logit model proposed by [52] and the fractional Dirichelet model proposed by [49]. As they do not perform better that the specifications included in the paper, we do not report the results but they are available from the authors upon request.
8 We choose the reference modality as the land use with the less number of shares equal to zero. Because it is still possible to have some zeros at the denominator, we add 𝜖=.0001 at the numerator and the denominator of Eq. 7. This is a minor drawback that can be visually evaluated from Figs. 4 and 5 from Supporting Information (SI). More rigorously, it will be also evaluated by comparing the predictions with those from other models, as we consider this as a necessity for estimating linearized logistic models, always used in the literature.
9 The case figure considered by [31] (“leave-one-out” predictors) and also by [51] (“ex-sample predictors”) is different from ours as they are concerned with a particular case of prediction: the case where for a cross-section of observations, part of the observations on the dependent variable is missing and needs to be predicted.
10 We dropped from the data observations that concern salt marshes, ponds, lakes, rivers, marshes, wetlands, glaciers, eternal snow, wastelands, and moors, which accounted for about 7 % of observations. Our final sample counts N = 514,074 points.
11 One can consider that, because of the higher number of observations, the individual models can contain additional terms such as interactions between variables or polynomials. To keep our comparative exercise simple, we choose to not consider this possibility of more complex regression functions as a comparative advantage of individual models.
References
AGRESTE (2004). L’utilisation du territoire en 2003 - nouvelle série 1992 à 2003. Chiffres et Donnees - Serie Agriculture, 157, 406–414.
Angulo, A., & Trivez, F.J. (2010). The impact of spatial elements on the forecasting of spanish labour series. Journal of Geographical Systems, 12, 155–174.
Anselin, L., & Cho, W.K.T. (2002). Spatial effect and ecological inference. Political Analysis, 10, 276–297.
Anselin, L. (1988). Spatial Econometrics: Methods and models. Dordrecht: Kluwer Academic Publishers.
Anselin, L. (2007). Spatial econometrics in RSUE: Retrospect and prospect. Regional Science and Urban Economics, 37(4), 450–456.
Anselin, L. (2010). Thirty years of spatial econometrics. Papers in Regional Science, 89(1), 3–25.
Ay, J.-S., Chakir, R., Doyen, L., Jiguet, F., & Leadley, P. (2014). Integrated models, scenarios and dynamics of climate,land use and common birds. Climatic Change, 126, 13–30.
Baltagi, B., & Li, D. (1999). Prediction in the spatially autocorrelated error component model. Econometric Theory, 2(259), 15.
Baltagi, B., & Li, D. (2006). Prediction in the panel data model with spatial correlation: the case of liquor. Spatial Economic Analysis, 1, 175–195.
Baltagi, B.H., Fingleton, B., & Pirotte, A. (2014). Estimating and forecasting with a dynamic spatial panel data model. Oxford Bulletin of Economics and Statistics, 76(1), 112–138.
Baltagi, B., Bresson, G., & Pirotte, A. (2012). Forecasting with spatial panel data. Computational Statistics and Data Analysis, 56, 3381–3397.
Bateman, I.J., Harwood, A.R., Mace, G.M., Watson, R.T., Abson, D.J., Andrews, B., Binner, A., Crowe, A., Day, B.H., Dugdale, S., Fezzi, C., Jo, F., Hadley, D., Haines-Young, R., Hulme, M., Kontoleon, A., Lovett, A.A., Munday, P., Pascual, U., Paterson, J., Perino, G., Sen, A., Siriwardena, G., Soest, D.V., & Termansen, M. (2013). Bringing ecosystem services into economic decision-making Land use in the United Kingdom. Science, 341(15), 45–50.
Bell, K.P., & Irwin, E.G. (2002). Spatially explicit micro-level modelling of land use change at the rural-urban interface. Agricultural Economics, 27(3), 217–232.
Bivand, R. (2002). Spatial econometrics functions in R: Classes and methods. Journal of Geographical Systems, 4(4), 405–421.
Bivand, R.S., Pebesma, E., & Gomez-Rubio, V. (2013). Applied Spatial Data Analysis with R. second Edition, UseR! Series, Springer.
Brady, M., & Irwin, E. (2011). Accounting for spatial effects in economic models of land use Recent developments and challenges ahead. Environmental & Resource Economics, 48(3), 487– 509.
Chakir, R., & Gallo, J.L. (2013). Predicting land use allocation in France A spatial panel data analysis. Ecological Economics, 92(0), 114–125.
Chakir, R., & Parent, O. (2009). Determinants of land use changes A spatial multinomial probit approach. Papers in Regional Science, 06(2), 327–344.
Cliff, A.D., & Ord, J.K. (1981). Processes Spatial: Models and applications. London: Pion.
Considine, T.J., & Mount, T.D. (1984). The use of linear logit models for dynamic input demand systems. The Review of Economics and Statistics, 434–443.
Paul Elhorst, J. (2010). Applied spatial econometrics: Raising the bar. Spatial Economic Analysis, 5(1), 9–28.
Ferdous, N., & Bhat, C.R. (2013). A spatial panel ordered-response model with application to the analysis of urban land-use development intensity patterns. Journal of Geographical Systems, 15(1), 1–29.
Fleming, M.M., & Mae, F. (2004) In Luc, A., & Florax, R. (Eds.), Techniques for estimating spatially dependent discrete choice models: Springer-verlag Heidelberg.
Florax, R.J.G., Folmer, H., & Rey, S.J. (2003). Specification searches in spatial econometrics The relevance of hendry’s methodology. Regional Science and Urban Economics, 33(5), 557–579.
Foley, J.A., & et al. (2005). Global consequences of land use. Science, 309(5734), 570–574.
Goldberger, A.S. (1962). Best linear unbiased prediction in the generalized linear regression model. Journal of the American Statistical Association, 57(298), 369–375.
Grunfeld, Y., & Griliches, Z. (1960). Is aggregation necessarily bad? The Review of Economics and Statistics, 42(1), 1–13.
Hastie, T., & Tibshirani, R. (1986). Generalized additive models. Statistical science, 297–310.
Irwin, E.G. (2010). New directions for urban economic models of land use change: incorporating spatial dynamics and heterogeneity. Journal of Regional Science, 50(1), 65–91.
Irwin, E.G., & Geoghegan, J. (2001). Theory, data, methods: Developing spatially explicit economic models of land use change. Agriculture, Ecosystems & Environment, 85(1-3), 7–24.
Kelejian, H.H., & Prucha, I.R. (2007). The relative efficiencies of various predictors in spatial econometric models containing spatial lags. Regional Science and Urban Economics, 37(3), 363–374.
Kelejian, H.H., & Prucha, I.R. (1999). A generalized moments estimator for the autoregressive parameter in a spatial model. International Economic Review, 40, 509–533.
Kennedy, P. (2003). A guide to econometrics: blackwell.
Kholodilin, A., Siliverstovs, B., & Kooth, S. (2008). A dynamic panel approach to the forecasting of the gdp of german lŁnder. Spatial Economic Analysis, 3, 195–207.
Klier, T., & McMillen, D.P. (2008). Clustering of auto supplier plants in the United States. Journal of Business & Economic Statistics, 26(4).
Knittel, C.R., & Metaxoglou, K. (2012). Estimation of random-coefficient demand models: Two empiricists’ perspective. Review of Economics and Statistics, 96(1).
Lambin, E.F., & Meyfroidt, P. (2011). Global land use change, economic globalization, and the looming land scarcity. Proceedings of the National Academy of Sciences, 108(9), 3465–3472.
Le Gallo, J. (2014). Cross-section spatial regression models. In Fischer, M.M., & Nijkamp, P. (Eds.), Handbook of Regional Science.
LeSage, J., & Pace, R.K. (2009). Introduction to spatial econometrics: CRC press boca raton FL.
Lewis, D.J. (2010). An economic framework for forecasting land-use and ecosystem change. Resource and Energy Economics, 32(2), 98–116.
Li, M., JunJie, W., & Deng, X. (2013). Identifying drivers of land use change in China a spatial multinomial logit model analysis. Land Economics, 89(4), 632–654.
Lichtenberg, E. (1989). Land quality, irrigation development, and cropping patterns in the northern high plains. American Journal of Agricultural Economics, 71(1), 187–194.
Lubowski, R., Plantinga, A., & Stavins, R. (2008). What drives land-use change in the United States? a national analysis of landowner decisions. Land Economics, 84(4), 551–572.
Lubowski, R.N., Plantinga, A.J., & Stavins, R.N. (2006). Land-use change and carbon sinks: Econometric estimation of the carbon sequestration supply function. Journal of Environmental Economics and Management, 51, 135–152.
Lubowski, R.N. (2002). Determinants of land-use transitions in the united states: Econometric analysis of changes among the major land-use categories. Massachusetts: PhD dissertation, Harvard University Cambridge.
McFadden, D. (1974). Conditional logit analysis of qualitative choice behavior. chap. 2 in Frontiers in Econometrics. New York: Academic Press.
Mcmillen, D.P. (1992). Probit with spatial autocorrelation. Journal of Regional Science, 32(3), 335–348.
Miller, D.J., & Plantinga, A.J. (1999). Modeling land use decisions with aggregate data. American Journal of Agricultural Economics, 81(1), 180–194.
Mullahy, J. (2010). Multivariate fractional regression estimation of econometric share models. NBER Working Papers 16354, National Bureau of Economic Research, Inc.
Nelson, E., Polasky, S., Lewis, D.J., Plantinga, A.J., Lonsdorf, E., White, D., Bael, D., & Lawler, J.J. (2008). Efficiency of incentives to jointly increase carbon sequestration and species conservation on a landscape. Proceedings of the National Academy of Sciences, 105(28), 9471–9476.
Pace, R.K., & LeSage, J.P. (2008). Spatial econometric models: Prediction. In Shekhar, S., & Xiong, H. (Eds.) Encyclopedia of Geographical Information Science. Springer-Verlag. doi:http://dx.doi.org/10.1007/978-0-387-35973-1.
Papke, L.E., & Wooldridge, J. (1993). Econometric methods for fractional response variables with an application to 401 (k) plan participation rates.
Pinkse, J., & Slade, M.E. (1998). Contracting in space An application of spatial statistics to discrete-choice models. Journal of Econometrics, 85(1), 125–154.
Plantinga, A.J., & Irwin, E.G. (2006) In Bell, K.P., Boyle, K.J., & Rubin, J. (Eds.), Overview of empirical methods: Ashgate Publishing.
Plantinga, A.J., Mauldin, T., & Miller, D.J. (1999). An econometric analysis of the costs of sequestering carbon in forests. American Journal of Agricultural Economics, 81, 812–24.
Plantinga, A.J. (1996). The effect of agricultural policies on land use and environmental quality. American Journal of Agricultural Economics, 78(4), 1082–1091.
Polyakov, M., & Zhang, D. (2010). Land Use Dynamics along Urban-Rural Gradient: A Comparison of Modeling Approaches. In Gan, J., Grado, S., & Munn, I.A. (Eds.) Global Change and Foresty (pp. 33–46): Nova Science Publishers.
Robertson, R.D., Nelson, G.C., & Pinto, A.D. (2009). Investigating the predictive capabilities of discrete choice models in the presence of spatial effects. Papers in Regional Science, 88(2), 367–388.
Schanne, N., Wapler, R., & Weyh, A. (2010). Regional unemployment forecasts with spatial interdependence. International Journal of Forecasting, 26, 908–926.
Schnier, K.E., & Felthoven, R.G. (2011). Accounting for spatial heterogeneity and autocorrelation in spatial discrete choice models: implications for behavioral predictions. Land economics, 87(3), 382–402.
Sidharthan, R., & Bhat, C.R. (2012). Incorporating spatial dynamics and temporal dependency in land use change models. Geographical Analysis, 44(4), 321–349.
Smirnov, O.A. (2010). Modeling spatial discrete choice. Regional Science and Urban Economics, 40(5), 292–298.
Stavins, R.N., & Jaffe, A.B. (1990). Unintended impacts of public investments on private decisions: The depletion of forested wetlands. American Economic Review, 80(3), 337–352.
Train, K. (2009). Discrete Choice Methods with Simulation, Second Edition, Cambridge University Press.
Turner, B.L., Lambin, E.F., & Reenberg, A. (2007). The emergence of land change science for global environmental change and sustainability. Proceedings of the National Academy of Sciences, 104(52), 20666–20671.
Verburg, P.H., Schot, P.P., Dijst, M.J., & Veldkamp, A. (2004). Land use change modelling: current practice and research priorities. GeoJournal, 61, 309–324.
von Graevenitz, K., & Panduro, T.E. (2015). An alternative to the standard spatial econometric approaches in hedonic house price models. Land Economics, 91(2), 386–409.
Wang, Y., Kockelman, K.M., & Wang, X.C. (2013). Understanding spatial filtering for analysis of land use-transport data. Journal of Transport Geography, 31, 123–131.
Wood, S.N. (2004). Stable and efficient multiple smoothing parameter estimation for generalized additive models. Journal of the American Statistical Association, 99(467).
Wu, J., & Adams, R.M. (2002). Micro versus macro acreage response models: Does site-specific information matter?. Journal of Agricultural and Resource Economics, 27(1).
Wu, J.J., & Duke, J.M. (2014). The oxford handbook of land economics. USA: Oxford university press.
Wu, J.J., & Segerson, K. (1995). The impact of policies and land characteristics on potential groundwater pollution in wisconsin. American Journal of Agricultural Economics, 77(4), 1033– 1047.
Zellner, A., & Lee, T.H. (1965). Joint estimation of relationships involving discrete random variables. Econometrica, 33, 382– 94.
Acknowledgments
The research leading to these results has received funding from the European Union by the European Commission within the Seventh Framework Programme in the frame of RURAGRI ERA-NET under Grant Agreement 235175 TRUSTEE (ANR–13–RURA–0001–01) and the French Agence Nationale de la Recherche through the ModULand project (ANR–11–BSH1–005). The authors only are responsible for any omissions or deficiencies. Neither the TRUSTEE project and any of its partner organizations, nor any organization of the European Union or European Commission are accountable for the content of this research.
Author information
Authors and Affiliations
Corresponding author
Electronic supplementary material
Below is the link to the electronic supplementary material.
Appendix
Appendix
1.1 A.1 Spatial Coefficient from Aggregated Models
Rights and permissions
About this article
Cite this article
Ay, JS., Chakir, R. & Gallo, J.L. Aggregated Versus Individual Land-Use Models: Modeling Spatial Autocorrelation to Increase Predictive Accuracy. Environ Model Assess 22, 129–145 (2017). https://doi.org/10.1007/s10666-016-9523-5
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10666-016-9523-5

