Bayesian clustered coefficients regression with auxiliary covariates assistant random effects. (June 2023)

• Record Type: Journal Article
• Authors: Hu, Guanyu; Xue, Yishu; Ma, Zhihua
• Is Part Of: Statistical modelling. Volume 23:Number 3(2023)
• Page Start: 273
• Page End: 293
• Publication Date: 2023-06
• Subjects: housing cost data -- MCMC -- Mixture of finite mixture -- spatial clustering; Linear models (Statistics) -- Periodicals; Mathematical models -- Periodicals; Modèles linéaires (Statistique) -- Périodiques; Modèles mathématiques -- Périodiques; Modèle statistique; Modèle linéaire; Modélisation statistique; Périodique électronique (Descripteur de forme); Ressource Internet (Descripteur de forme); 519.5011
• DOI: 10.1177/1471082X211049278
• Languages: English
• ISSNs: 1471-082X

Abstract

In regional economics research, a problem of interest is to detect similarities between regions, and estimate their shared coefficients in economics models. In this article, we propose a mixture of finite mixtures clustered regression model with auxiliary covariates that account for similarities in demographic or economic characteristics over a spatial domain. Our Bayesian construction provides both inference for number of clusters and clustering configurations, and estimation for parameters for each cluster. Empirical performance of the proposed model is illustrated through simulation experiments, and further applied to a study of influential factors for monthly housing cost in Georgia.