Multiscale spatially varying coefficient modelling using a Geographical Gaussian Process GAM

Abstract

This paper proposes a novel spatially varying coefficient (SVC) regression through a Geographical Gaussian Process GAM (GGP-GAM): a Generalized Additive Model (GAM) with Gaussian Process (GP) splines parameterised at observation locations. A GGP-GAM was applied to multiple simulated coefficient datasets exhibiting varying degrees of spatial heterogeneity and out-performed the SVC brand-leader, Multiscale Geographically Weighted Regression (MGWR), under a range of fit metrics. Both were then applied to a Brexit case study and compared, with MGWR marginally out-performing GGP-GAM. The theoretical frameworks and implementation of both approaches are discussed: GWR models calibrate multiple models whereas GAMs provide a full single model; GAMs can automatically penalise local collinearity; GWR-based approaches are computationally more demanding; MGWR is still only for Gaussian responses; MGWR bandwidths are intuitive indicators of spatial heterogeneity. GGP-GAM calibration and tuning are also discussed and areas of future work are identified, including the creation of a user-friendly package to support model creation and coefficient mapping, and to facilitate ease of comparison with alternate SVC models. A final observation that GGP-GAMs have the potential to overcome some of the long-standing reservations about GWR-based regression methods and to elevate the perception of SVCs amongst the broader community.