Topics in Spatial Econometrics - With Applications to House Prices

Topics in Spatial Econometrics — With Applications to House Prices Spatial effects in data occur when geographical closeness of observations influences the relation between the observations. When two points on a map are close to each other, the observed values on a variable at those points tend to be similar. The further away the two points are from each other, the less similar the observed values tend to be. Recent technical developments, geographical information systems (GIS) and global positioning systems (GPS) have brought about a renewed interest in spatial matters. For instance, it is possible to observe the exact location of an observation and combine it with other characteristics. Spatial econometrics integrates spatial aspects into econometric models and analysis. The thesis concentrates mainly on methodological issues, but the findings are illustrated by empirical studies on house price data. The thesis consists of an introductory chapter and four essays. The introductory chapter presents an overview of topics and problems in spatial econometrics. It discusses spatial effects, spatial weights matrices, especially k-nearest neighbours weights matrices, and various spatial econometric models, as well as estimation methods and inference. Further, the problem of omitted variables, a few computational and empirical aspects, the bootstrap procedure and the spatial J-test are presented. In addition, a discussion on hedonic house price models is included. In the first essay a comparison is made between spatial econometrics and time series analysis. By restricting the attention to unilateral spatial autoregressive processes, it is shown that a unilateral spatial autoregression, which enjoys similar properties as an autoregression with time series, can be defined. By an empirical study on house price data the second essay shows that it is possible to form coordinate-based, spatially autoregressive variables, which are at least to some extent able to replace the spatial structure in a spatial econometric model. In the third essay a strategy for specifying a k-nearest neighbours weights matrix by applying the spatial J-test is suggested, studied and demonstrated. In the final fourth essay the properties of the asymptotic spatial J-test are further examined. A simulation study shows that the spatial J-test can be used for distinguishing between general spatial models with different k-nearest neighbours weights matrices. A bootstrap spatial J-test is suggested to correct the size of the asymptotic test in small samples.

On the use of weather radar for mesoscale applications in northern conditions

Mesoscale weather phenomena, such as the sea breeze circulation or lake effect snow bands, are typically too large to be observed at one point, yet too small to be caught in a traditional network of weather stations. Hence, the weather radar is one of the best tools for observing, analyzing and understanding their behavior and development. A weather radar network is a complex system, which has many structural and technical features to be tuned, from the location of each radar to the number of pulses averaged in the signal processing. These design parameters have no universal optimal values, but their selection depends on the nature of the weather phenomena to be monitored as well as on the applications for which the data will be used. The priorities and critical values are different for forest fire forecasting, aviation weather service or the planning of snow ploughing, to name a few radar-based applications. The main objective of the work performed within this thesis has been to combine knowledge of technical properties of the radar systems and our understanding of weather conditions in order to produce better applications able to efficiently support decision making in service duties for modern society related to weather and safety in northern conditions. When a new application is developed, it must be tested against ground truth . Two new verification approaches for radar-based hail estimates are introduced in this thesis. For mesoscale applications, finding the representative reference can be challenging since these phenomena are by definition difficult to catch with surface observations. Hence, almost any valuable information, which can be distilled from unconventional data sources such as newspapers and holiday shots is welcome. However, as important as getting data is to obtain estimates of data quality, and to judge to what extent the two disparate information sources can be compared. The presented new applications do not rely on radar data alone, but ingest information from auxiliary sources such as temperature fields. The author concludes that in the future the radar will continue to be a key source of data and information especially when used together in an effective way with other meteorological data.

Nonlinear mixture autoregressive model: economic applications

The aim of this dissertation is to model economic variables by a mixture autoregressive (MAR) model. The MAR model is a generalization of linear autoregressive (AR) model. The MAR -model consists of K linear autoregressive components. At any given point of time one of these autoregressive components is randomly selected to generate a new observation for the time series. The mixture probability can be constant over time or a direct function of a some observable variable. Many economic time series contain properties which cannot be described by linear and stationary time series models. A nonlinear autoregressive model such as MAR model can a plausible alternative in the case of these time series. In this dissertation the MAR model is used to model stock market bubbles and a relationship between inflation and the interest rate. In the case of the inflation rate we arrived at the MAR model where inflation process is less mean reverting in the case of high inflation than in the case of normal inflation. The interest rate move one-for-one with expected inflation. We use the data from the Livingston survey as a proxy for inflation expectations. We have found that survey inflation expectations are not perfectly rational. According to our results information stickiness play an important role in the expectation formation. We also found that survey participants have a tendency to underestimate inflation. A MAR model has also used to model stock market bubbles and crashes. This model has two regimes: the bubble regime and the error correction regime. In the error correction regime price depends on a fundamental factor, the price-dividend ratio, and in the bubble regime, price is independent of fundamentals. In this model a stock market crash is usually caused by a regime switch from a bubble regime to an error-correction regime. According to our empirical results bubbles are related to a low inflation. Our model also imply that bubbles have influences investment return distribution in both short and long run.

Light scattering in random media with wavelength-scale structures : astronomical and industrial applications

Light scattering, or scattering and absorption of electromagnetic waves, is an important tool in all remote-sensing observations. In astronomy, the light scattered or absorbed by a distant object can be the only source of information. In Solar-system studies, the light-scattering methods are employed when interpreting observations of atmosphereless bodies such as asteroids, atmospheres of planets, and cometary or interplanetary dust. Our Earth is constantly monitored from artificial satellites at different wavelengths. With remote sensing of Earth the light-scattering methods are not the only source of information: there is always the possibility to make in situ measurements. The satellite-based remote sensing is, however, superior in the sense of speed and coverage if only the scattered signal can be reliably interpreted. The optical properties of many industrial products play a key role in their quality. Especially for products such as paint and paper, the ability to obscure the background and to reflect light is of utmost importance. High-grade papers are evaluated based on their brightness, opacity, color, and gloss. In product development, there is a need for computer-based simulation methods that could predict the optical properties and, therefore, could be used in optimizing the quality while reducing the material costs. With paper, for instance, pilot experiments with an actual paper machine can be very time- and resource-consuming. The light-scattering methods presented in this thesis solve rigorously the interaction of light and material with wavelength-scale structures. These methods are computationally demanding, thus the speed and accuracy of the methods play a key role. Different implementations of the discrete-dipole approximation are compared in the thesis and the results provide practical guidelines in choosing a suitable code. In addition, a novel method is presented for the numerical computations of orientation-averaged light-scattering properties of a particle, and the method is compared against existing techniques. Simulation of light scattering for various targets and the possible problems arising from the finite size of the model target are discussed in the thesis. Scattering by single particles and small clusters is considered, as well as scattering in particulate media, and scattering in continuous media with porosity or surface roughness. Various techniques for modeling the scattering media are presented and the results are applied to optimizing the structure of paper. However, the same methods can be applied in light-scattering studies of Solar-system regoliths or cometary dust, or in any remote-sensing problem involving light scattering in random media with wavelength-scale structures.

A Simple Programmable 2-Pulse Generator for Pulsed NMR NQR Applications

Programmable pulse generator (PPG) circuits using programmable interval timer chips are normally based on a PC or a microprocessor. We describe here a simple low cost programmable two-pulse generator using Intel 8253s in a stand-alone mode, eliminating the need for a PC or a microprocessor, though our design also can be operated via a PC or a microprocessor.

18-Bit binary inductive voltage divider for self balancing ac bridge applications

The constructional details of an 18-bit binary inductive voltage divider (IVD) for a.c. bridge applications is described. Simplified construction with less number of windings, interconnection of winding through SPDT solid state relays instead of DPDT relays, improves reliability of IVD. High accuracy for most precision measurement achieved without D/A converters. The checks for self consistency in voltage division shows that the error is less than 2 counts in 2(18).

Distance measures on intersecting objects and their applications

Let A and B be two objects. We define measures to characterize the penetration of A and B when A boolean AND B not equal 0. We then present properties of the measures and efficient algorithms to compute them for planar and polyhedral objects. We explore applications of the measures and present some experimental results.

Smart applications for energy harvested WSNs

A Wireless Sensor Network (WSN) powered using harvested energies is limited in its operation by instantaneous power. Since energy availability can be different across nodes in the network, network setup and collaboration is a non trivial task. At the same time, in the event of excess energy, exciting node collaboration possibilities exist; often not feasible with battery driven sensor networks. Operations such as sensing, computation, storage and communication are required to achieve the common goal for any sensor network. In this paper, we design and implement a smart application that uses a Decision Engine, and morphs itself into an energy matched application. The results are based on measurements using IRIS motes running on solar energy. We have done away with batteries; instead used low leakage super capacitors to store harvested energy. The Decision Engine utilizes two pieces of data to provide its recommendations. Firstly, a history based energy prediction model assists the engine with information about in-coming energy. The second input is the energy cost database for operations. The energy driven Decision Engine calculates the energy budgets and recommends the best possible set of operations. Under excess energy condition, the Decision Engine, promiscuously sniffs the neighborhood looking for all possible data from neighbors. This data includes neighbor's energy level and sensor data. Equipped with this data, nodes establish detailed data correlation and thus enhance collaboration such as filling up data gaps on behalf of nodes hibernating under low energy conditions. The results are encouraging. Node and network life time of the sensor nodes running the smart application is found to be significantly higher compared to the base application.

Context based service discovery for ubiquitous applications

Service discovery is vital in ubiquitous applications, where a large number of devices and software components collaborate unobtrusively and provide numerous services without user intervention. Existing service discovery schemes use a service matching process in order to offer services of interest to the users. Potentially, the context information of the users and surrounding environment can be used to improve the quality of service matching. To make use of context information in service matching, a service discovery technique needs to address certain challenges. Firstly, it is required that the context information shall have unambiguous representation. Secondly, the devices in the environment shall be able to disseminate high level and low level context information seamlessly in the different networks. And thirdly, dynamic nature of the context information be taken into account. We propose a C-IOB(Context-Information, Observation and Belief) based service discovery model which deals with the above challenges by processing the context information and by formulating the beliefs based on the observations. With these formulated beliefs the required services will be provided to the users. The method has been tested with a typical ubiquitous museum guide application over different cases. The simulation results are time efficient and quite encouraging.

An Effective Seamless Connectivity Scheme for Ubiquitous Applications

The idea of ubiquity and seamless connectivity in networks is gaining more importance in recent times because of the emergence of mobile devices with added capabilities like multiple interfaces and more processing abilities. The success of ubiquitous applications depends on how effectively the user is provided with seamless connectivity. In a ubiquitous application, seamless connectivity encompasses the smooth migration of a user between networks and providing him/her with context based information automatically at all times. In this work, we propose a seamless connectivity scheme in the true sense of ubiquitous networks by providing smooth migration to a user along with providing information based on his/her contexts automatically without re-registration with the foreign network. The scheme uses Ubi-SubSystems(USS) and Soft-Switches(SS) for maintaining the ubiquitous application resources and the users. The scheme has been tested by considering the ubiquitous touring system with several sets of tourist spots and users.

The Co Cr S ternary diagram at 1223 K and applications to corrosion

Ternary phase relations in the Co-Cr-S system at 1223 K were determined using microprobe analysis of quenched samples. The results are consistent with the data available on the binary systems. A complete solid solution exists between cobalt monosulfide and chromium monosulfide. The CoCr2S4 thiospinel is the only ternary compound formed. A sulfur potential diagram was constructed for the region involving equilibrium between alloy and monosulfide based on thermodynamic data on the Co-Cr, Co-S, and Cr-S binary systems and the ternary information obtained in this study. The sulfidation behavior of Co-Cr alloys reported in the literature is discussed in light of the sulfur potential diagram.