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The Model of Per-Capita Expenditure Figures in Sumatera Selatan uses a Geographically Weighted Panel Regression

Dia Cahya Wati, Dea Alvionita Azka, Herni Utami
Indonesian Journal of Statistics and Its Applications , Volume 5, pp 61-74; doi:10.29244/ijsa.v5i1p61-74

Abstract: The Geographically Weighted Panel Regression (GWPR) is a development of a global regression model where the basic idea is taken from a combination of panel data and GWR. The GWPR model is built from the point approach method, which is based on the position of the coordinates of latitude and longitude. The parameters for the regression model at each location will produce different values. GWPR can accommodate spatial effects, so that it can better explain the relationship between response variables and predictors. The purpose of this study is to compare the GWPR model with the Fixed Gaussian and Adaptive Bisquare weighting functions based on the AIC value. The data used in this study is secondary data taken from the website of the Central Statistics Agency (BPS) in the form of Per-Capita Expenditure Figures in South Sumatra in 2013-2019. This research results that in the case of the Per-Capita Expenditure Rate (AP), it is better to use the GWPR method with a fixed gaussian weighting function in the modeling, where the resulting coefficient of determination is 95.81% rather than adaptive bisquare with a determination coefficient of 93.3%. The factors that influence the Per-Capita Expenditure Rate (AP) in South Sumatra on the fixed gaussian weighting are divided into 6 groups, while the adaptive bisquare is divided into 2 groups.
Keywords: model / functions / adaptive / coefficient / South / Capita Expenditure / Sumatra / GWPR

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