2022/03/10 by Daniel A. Griffith, Yongwan Chun, Hyun Kim
Economics, Econometrics and Finance · #Spatial and Panel Data Analysis #Economic and Environmental Valuation #Regional Economics and Spatial Analysis
paper · doi:10.1111/gean.12321
Except for about a half dozen papers, virtually all (co)authored by Griffith, the existing literature lacks much content about the interface between spatial optimization, a popular form of geographic analysis, and spatial autocorrelation, a fundamental property of georeferenced data. The popular p ‐median location‐allocation problem highlights this situation: the empirical geographic distribution of demand virtually always exhibits positive spatial autocorrelation. This property of geospatial data offers additional overlooked information for solving such spatial optimization problems when it actually relates to their solutions. With a proof‐of‐concept outlook, this paper articulates connections between the well‐known Majority Theorem of the 1‐median minisum problem and local indices of spatial autocorrelation; the LISA statistics appear to be the more useful of these later statistics because they better embrace negative spatial autocorrelation. The relationship articulation outlined here results in the positing of a new proposition labeled the egalitarian theorem.