Document Type
Article
Department/Program
Kinesiology & Health Sciences
Journal Title
The Annals of Regional Science
Pub Date
3-2022
Publisher
Springer
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.
Abstract
In many microeconometric studies distance from a relevant point of interest (such as a hospital) is often used as a predictor in a regression framework. Confidentiality rules, often, require to geo-mask spatial micro-data, reducing the quality of such relevant information and distorting inference on models’ parameters. This paper extends previous literature, extending the classical results on the measurement error in a linear regression model to the case of hospital choice, showing that in a discrete choice model the higher is the distortion produced by the geo-masking, the higher will be the downward bias in absolute value toward zero of the coefficient associated to the distance in the models. Monte Carlo simulations allow us to provide evidence of theoretical hypothesis. Results can be used by the data producers to choose the optimal value of the parameters of geo-masking preserving confidentiality, not destroying the statistical information.
Recommended Citation
Arbia, Giuseppe; Berta, Paolo; and Dolan, Carrie B., Locational Error in the Estimation of Regional Discrete Choice Models Using Distance as a Regressor (2022). The Annals of Regional Science.
https://doi.org/10.1007/s00168-022-01116-y
DOI
https://doi.org/10.1007/s00168-022-01116-y
