Econometrics Commons^™

Locational Error In The Estimation Of Regional Discrete Choice Models Using Distance As A Regressor, Giuseppe Arbia, Paolo Berta, Carrie B. Dolan

Arts & Sciences Articles

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 …