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A Conditionally Parametric Probit Model of Micro-Data Land Use in Chicago. Daniel McMillen Maria Soppelsa. Overview. Residential v. Commercial/Industrial Land Use in Chicago, 2010 A conditionally parametric (CPAR) approach produces smooth estimates over space
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A Conditionally Parametric ProbitModel of Micro-Data Land Use in Chicago Daniel McMillen Maria Soppelsa
Overview • Residential v. Commercial/Industrial Land Use in Chicago, 2010 • A conditionally parametric (CPAR) approach produces smooth estimates over space • Target points chosen using an adaptive decision tree approach (Loader, 1999) • Interpolation from 182 target points to all 583,063 individual parcels in the data set
Estimation Procedures • Case (1992). Special From for W • McMillen (1992). EM Algorithm • Pinkse and Slade (1998). GMM for spatial error model. • LeSage (2000). Bayesian approach • Klier and McMillen (2007). Linearized version of GMM probit/logit for spatial AR model.
GMM Probit • , β, ρ to minimize
Linearized GMM Probit 1. Standard probit: 2. 2SLS regression of e on on and , where • . Requires inversion of
CPAR Probit • = kernel weight function, distance between observation j and target point. • Straightforward extension of “GWR” – a special case of locally weighted or locally linear regression. • Applications: • McMillen and McDonald (2004) • Wang, Kockelman, and Wang (2011) • Wren and Sam (2012)
Data • Individual parcels in Chicago, 2010 • Major Classes: • Vacant Land (33,139) • Residential, 6 units or fewer (728,541, 539,975 after geocoding) • Multi-Family Residential (11,529) • Non-Profit (316) • Commercial and Industrial (50,508, 43,088 after geocoding) • “Incentive Classes” (1,487)
Explanatory Variables • Distance from parcel centroid to: • CBD • Lake Michigan • EL line • EL stop • Rail line • Major street • Park • Highway
Probability of Residential Land Use: CPAR Probit, 10% Window Size