Spatial Error Model

A Spatial Error Model is a type of statistical analysis used when data points are geographically related. It accounts for the fact that errors (or inaccuracies) in one area may be similar to those in nearby areas, often due to unmeasured regional factors. By considering this spatial dependence in errors, the model provides more accurate estimates of relationships between variables. Essentially, it recognizes that neighboring locations can influence each other’s data quality or errors, helping researchers better understand spatial patterns without assuming that all data points are independent.