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The use of elasticities of substitution between inputs is a standard method for addressing the effect of a change in the mix of inputs used for production from a technical or cost standpoint. Most estimation methods use parametric production or cost functions or frontiers to estimate these elasticities. A potentially useful nonparametric alternative is data envelopment analysis (DEA). The purpose of this paper is to derive elasticities of input substitution for both technical and cost frontiers using DEA, extending the use of this approach in the field of economics and associated fields. The paper provides derivations for both Hicksian (production and cost frontier) and Morishima (cost frontier) elasticities of input substitution, as well as a parsimonious method for estimating them using DEA. The derivations are presented using an agricultural example form Kansas, USA. [ABSTRACT FROM AUTHOR]

This paper aims to demonstrate the impact of coal enterprises’ vertical integration on the performance of innovation corporate social responsibility (ICSR) and to elaborate its specific transmission path through financing structure and market power. This paper takes the data of A-share listed coal company from 2008 to 2017 as samples, uses input-output table method to measure the degree of vertical integration, and explores the relationship between the four factors through multiple linear regression and Bootstrap method. We found that: (1) the vertical integration of coal enterprises has positive incentives for the promotion of ICSR. (2) Financing structure and market power play a chain intermediary role in this process of incentive. (3) In areas with high marketization process, vertical integration has more significant incentive effect on ICSR. The paper extends the research on the relationship between vertical integration and innovation, which provides a reference for the improvement of China’s supply-side reform and corporate social responsibility (CSR) fulfillment policy. It is helpful to promote the sustainable development of the coal industry, stimulate the innovation vitality of enterprises, and improve the fulfillment of CSR. [ABSTRACT FROM AUTHOR]

In this paper, the accelerated failure time (AFT) model is modified to analyze post-work grocery shopping activity duration. Much previous shopping duration analysis was conducted using the proportional hazard (PH) modeling approach. Once the proportionality assumption was violated, the traditional accelerated failure time (TAFT) model was usually selected as an alternative modeling approach. However, a TAFT model only has covariates with non-proportional and time-dependent effects on the hazard overtime while a PH model only accommodates covariates with proportional and time-independent effects. Neither of them considers the possibility that some of covariates may have proportional and time-independent effects and some may have non-proportional and time-dependent effects on the hazard value in one model. To address this issue, the paper generalizes the TAFT model and develops a modified accelerated failure time (MAFT) model to accommodate both time-dependent and time-independent covariates for activity duration analysis. Checking on the proportionality assumption indicates that the assumption is not valid in the post-work grocery shopping activity data extracted from the 2017 National Household Travel Survey (NHTS) conducted by the U.S. Department of Transportation (USDOT). Both TAFT and MAFT models are developed for comparisons and analysis. The empirical and statistical results show that there do exist two different types of covariates affecting shopping activity duration, including covariates only with proportional and time-independent effects (i.e. working duration, commute travel time) and those with non-proportional and time-dependent effects. The MAFT model can capture the subtleties in various types of covariate effects and help better understand how those covariates affect activity duration overtime. This paper also shows the importance to develop a flexible duration model with both time-dependent and time-independent covariates for accurately evaluating travel demand management (TDM) policies, like flexible work hours. [ABSTRACT FROM AUTHOR]

This paper quantifies the effect of speed cameras on road traffic collisions using an approximate Bayesian doubly-robust (DR) causal inference estimation method. Previous empirical work on this topic, which shows a diverse range of estimated effects, is based largely on outcome regression (OR) models using the Empirical Bayes approach or on simple before and after comparisons. Issues of causality and confounding have received little formal attention. A causal DR approach combines propensity score (PS) and OR models to give an average treatment effect (ATE) estimator that is consistent and asymptotically normal under correct specification of either of the two component models. We develop this approach within a novel approximate Bayesian framework to derive posterior predictive distributions for the ATE of speed cameras on road traffic collisions. Our results for England indicate significant reductions in the number of collisions at speed cameras sites (mean ATE = -15%). Our proposed method offers a promising approach for evaluation of transport safety interventions. [ABSTRACT FROM AUTHOR]

Empirical studies show that discrimination by identity found in offline markets also prevails online. This paper reveal that in a competitive market, buyers that intend to discriminate exist but they are prevented from influencing the market outcome. To this end, we construct a field experiment on eBay, where half of the sellers disclose their names in their usernames while the other half do not. eBay, however, automatically discloses the seller’s names to the buyer after the auction. In the anonymous auctions, winning bidders thus learn the identity of the seller after the auction ends, and here we find buyers to discriminate against sellers with foreign-sounding names by leaving them feedback less often. However, there is no such discrimination in feedback provision when the seller name was known to the buyer before the auction. When bidders know the names of the sellers, the bidders with animus towards individuals with specific names can select out of auctions from these sellers, leaving winners that do not discriminate. One would expect that the auctions of for example sellers with foreign-sounding names would receive fewer bidders and thus lower auction prices. However, we observe no such differences: there are no statistically significant differences in the number of bids or auction prices received by sellers with foreign or domestic sounding names. [ABSTRACT FROM AUTHOR]

China is facing severe pressure on its water resources and water environments. Calculating the industrial water efficiency of each province is an important index for the central government to evaluate local governments. In the traditional water resources evaluation index, the industrial water use efficiency and pollutant discharge are evaluated separately. In this paper, we collected industrial input data, output data and pollutant discharge data with a four-stage data envelopment analysis to calculate China's industrial water use efficiency with and without considering pollutant discharge, and then analyzed the factors influencing the industrial water use efficiency. The results show that the eastern coastal provinces of China have the highest water use efficiency and are less affected by pollutant discharge than other provinces. The industrial water use efficiency of the central and western provinces is lower than that of the other provinces, and the industrial water use efficiency in the central provinces is greatly affected by pollutant discharge. Factor endowment, economic development level, scientific and technological progress, industrial structure, proportion of foreign investment, water consumption per 10000 yuan of value-added by industry, industrial sewage treatment capacity and educational investment have a significant influence on the industrial water use efficiency of China. We suggest that the government strengthen the construction of sewage plants and other related infrastructure in central provinces when conducting the industrial transfer of heavy polluting enterprises. [ABSTRACT FROM AUTHOR]

Motivation: Proper management of fecal sludge has significant positive health and environmental externalities. Most research on managing onsite sanitation so far either simulates the costs of, or the welfare effects from, managing sludge in situ in pit latrines. Thus, designing management strategies for onsite rural sanitation is challenging, because the actual costs of transporting sludge for treatment, and sources for financing these transport costs, are not well understood. Methods: In this paper we calculate the actual cost of sludge management from onsite latrines, and identify the contributions that latrine owners are willing to make to finance the costs. A spreadsheet-based model is used to identify a cost-effective transport option, and to calculate the cost per household. Then a double-bound contingent valuation method is used to elicit from pit-latrine owners their willingness-to-pay to have sludge transported away. This methodology is employed for the case of a rural subdistrict in Bangladesh called Bhaluka, a unit of administration at which sludge management services are being piloted by the Government of Bangladesh. Results: The typical sludge accumulation rate in Bhaluka is calculated at 0.11 liters/person/day and a typical latrine will need to be emptied approximately once every 3 to 4 years. The costs of emptying and transport are high; approximately USD 13 per emptying event (circa 14% of average monthly income); household contributions could cover around 47% of this cost. However, if costs were spread over time, the service would cost USD 4 per year per household, or USD 0.31 per month per household—comparable to current expenditures of rural households on telecommunications. Conclusion: This is one of few research papers that brings the costs of waste management together with financing of that cost, to provide evidence for an implementable solution. This framework can be used to identify cost effective sludge management options and private contributions towards that cost in other (context-specific) administrative areas where onsite sanitation is widespread. [ABSTRACT FROM AUTHOR]

Setting: Research capacity is weakest in low and middle-income countries (LMICs) where operational research is highly relevant and needed. Structured Operational Research and Training Initiative (SORT IT) courses have been developed to train participants to conduct and publish operational research and influence policy and practice. Twenty courses were completed in Asia, Africa, Europe and the South Pacific between 2009 and 2014. Objectives: In the 20 completed SORT IT courses, to assess where the research was conducted, who was trained, who became facilitators in subsequent courses and course outcomes. Design: A cohort study of completed SORT IT courses Results: There were 236 participants (41% female) including 64 nationalities who conducted research in 59 countries, mostly from Asia and Africa (mean course duration = 9.7 months). Most participants (68%) were from government health programs and non-governmental agencies. A total of 213(90%) participants completed all milestones successfully with 41(19%) becoming subsequent course facilitators, 88% of whom were from LMICs. Of 228 manuscripts submitted to scientific journals, 197(86%) were either published or in press; in 86%, the principal investigator (first author) was a LMIC national. Papers were published in 23 scientific journals (impact factor 0.5–4.4) and covered 21 disease categories (median publication time = 5.7 months). Published papers (186) had 94,794 cumulative article views/downloads. Article views/downloads for immediate open access articles were double those from closed access journals. Conclusion: The SORT IT model has been effective in training personnel to produce relevant operational research in LMICs. It merits continued commitment and support for further scale-up and development. [ABSTRACT FROM AUTHOR]

The adoption of the shared prosperity goal by the World Bank in 2013 and Sustainable Development Goal 10, on inequality, by the United Nations in 2015 should strengthen the focus of development interventions and cooperation on the income growth of the bottom 40 percent of the income distribution. This paper contributes to the incipient literature on within-country allocations of development institutions and assesses the geographic targeting of World Bank projects to the bottom 40 percent. Bivariate correlations between the allocation of project funding approved over 2005–14 and the geographical distribution of the bottom 40 as measured by survey income or consumption data are complemented by regressions with population and other potential factors affecting the within-country allocations as controls. The correlation analysis shows that, of the 58 countries in the sample, 41 exhibit a positive correlation between the shares of the bottom 40 and World Bank funding, and, in almost half of these, the correlation is above 0.5. Slightly more than a quarter of the countries, mostly in Sub-Saharan Africa, exhibit a negative correlation. The regression analysis shows that, once one controls for population, the correlation between the bottom 40 and World Bank funding switches sign and becomes significant and negative on average. This is entirely driven by Sub-Saharan Africa and not observed in the other regions. Hence, the significant and positive correlation in the estimations without controlling for population suggests that World Bank project funding is concentrated in administrative areas in which more people live (including the bottom 40) rather than in poorer administrative areas. Furthermore, capital cities receive disproportionally high shares of World Bank funding on average. [ABSTRACT FROM AUTHOR]

In recent years, with the rapid development of China's air transport industry and the change in market consumption structure, service quality has become one of the important factors affecting airline revenue. How to formulate a reasonable pricing strategy and maintain competitiveness in the fierce market competition has become an urgent problem for airlines. First, the impact factor of service quality level in the traditional pricing model is introduced and a static price competition model for multi-oligopoly airlines based on service quality is established in this paper. And then, a dynamic pricing model based on service quality of the multi-oligopoly airlines is established. The model incorporates the weight factor of service quality impact, which is used to indicate the weight of the service quality level in the process of airline dynamic pricing. The research results show that the service quality level of airlines has an indispensable influence on its development. Airlines should improve service quality as soon as possible to enhance market competitiveness and achieve sustainable development. [ABSTRACT FROM AUTHOR]

This paper combines a Granger causality test and a VAR model to investigate the relationships among oil price shocks, global economic policy uncertainty (GEPU), and China’s industrial economic growth. Based on monthly data from 2000 to 2017, we reveal that GEPU and world oil prices jointly Granger cause China's industrial economic growth; world oil prices have a positive effect on China's industrial economic growth, while GEPU has a negative effect. Further analyses investigate the asymmetry effect of oil prices and find that the negative component shows a more significant impact on China's industrial economic growth. The results are robust to different oil price and EPU proxies. [ABSTRACT FROM AUTHOR]

Quigley derived his hybrid price model to improve the precision of predicted prices of sold homes by statistically merging data of resold homes in a repeat sales model with that of once-sold homes in a single sales hedonic price model. The literature has few applications of the hybrid model aside from those by Quigley and his collaborators. Two reasons for this underuse may be its computational intensiveness and its marginal empirical improvement in comparison with two other models. This paper first demystifies this computational intensiveness by calibrating models in Microsoft Excel with transferable procedures into other software. It second evaluates the hybrid price model’s empirical improvement as a reason for its underuse by predicting prices of 2,559 sold and resold homes observed in two inner-city neighbourhoods in Windsor, Ontario, during a 30-year period. The results as hypothesized are its lower standard errors of regression coefficients and higher simple R-squared than those of a single sales hedonic price model. Moreover, the hybrid model’s predictions have higher correlations than those of the single sales model with not only in-sample observed prices or changes in prices but also out-of-sample ones. The conclusion speculates in plans for future research about reasons for two models’ similar or dissimilar regression coefficients and standard errors predicting correspondingly similar or dissimilar sale prices of homes through time. [ABSTRACT FROM AUTHOR]

The clustering of time series has attracted growing research interest in recent years. The most popular clustering methods assume that the time series are only linearly dependent but this assumption usually fails in practice. To overcome this limitation, in this paper, we study clustering methods applicable to time series with a general and dependent structure. We propose a copula-based distance to measure dissimilarity among time series and consider an estimator for it, where the strong consistency of the estimator is guaranteed. Once the pairwise distance matrix for time series has been obtained, we apply a hierarchical clustering algorithm to cluster the time series and ensure its consistency. Numerical studies, including a large number of simulations and analysis of practical data, show that our method performs well. [ABSTRACT FROM AUTHOR]

Due to difficulties in accurately predicting the emergency timing and the magnitude of a disaster, operations for perishable emergency inventory planning often encounter expiration and shortage problems. In order to ease the expiration problem in emergency medicine preparation inventories, this paper investigates an emergency medicine closed-loop supply chain for returning unused items from an ERC (Emergency Reserve Center) to a hospital. To assure that the return strategy is meaningful, we propose a critical parameter that we term the latest return time, after which the remaining emergency medicine in the ERC cannot be returned to the hospital. In addition, the short lifetime of emergency products and uncertainty about demand time and demand quantity are also considered in this emergency inventory planning system. In analyzing the optimal ordering policies, we find that the two threshold values for the predefined return time, which affect the total costs, are not monotonous; rather, the direction of their effect is first down, then up, and then down again, which means that a better predefined value of the latest return time can be determined by minimizing total costs. By studying and comparing decentralized and centralized decisions, we find that the centralized decision system works better to control expiration and costs. Therefore, we design a coordination mechanism for the cooperation between the ERC and the hospital. Our analysis shows that we should not ignore the emergency uncertainty and perishability of emergency items. [ABSTRACT FROM AUTHOR]

Accurate reporting and forecasting of PM2.5 concentration are important for improving public health. In this paper, we propose a partial differential equation (PDE) model, specially, a linear diffusive equation, to describe the spatial-temporal characteristics of PM2.5 in order to make short-term prediction. We analyze the temporal and spatial patterns of a real dataset from China’s National Environmental Monitoring and validate the PDE-based model in terms of predicting the PM2.5 concentration of the next day by the former days’ history data. Our experiment results show that the PDE model is able to characterize and predict the process of PM2.5 transport. For example, for 300 continuous days of 2016, the average prediction accuracy of the PDE model over all city-regions is 93% or 83% based on different accuracy definitions. To our knowledge, this is the first attempt to use PDE-based model to study PM2.5 prediction in both temporal and spatial dimensions. [ABSTRACT FROM AUTHOR]

This paper proposes an optimization model, using Mixed-Integer Linear Programming (MILP), to support decisions related to making investments in the design of power grids serving industrial clients that experience interruptions to their energy supply due to disruptive events. In this approach, by considering the probabilities of the occurrence of a set of such disruptive events, the model is used to minimize the overall expected cost by determining an optimal strategy involving pre- and post-event actions. The pre-event actions, which are considered during the design phase, evaluate the resilience capacity (absorption, adaptation and restoration) and are tailored to the context of industrial clients dependent on a power grid. Four cases are analysed to explore the results of different probabilities of the occurrence of disruptions. Moreover, two scenarios, in which the probability of occurrence is lowest but the consequences are most serious, are selected to illustrate the model’s applicability. The results indicate that investments in pre-event actions, if implemented, can enhance the resilience of power grids serving industrial clients because the impacts of disruptions either are experienced only for a short time period or are completely avoided. [ABSTRACT FROM AUTHOR]

It is difficult to know whether different dimensions of trust have different effects on local residents’ acceptance of nuclear power plants (NPPs). In previous research such trust has been considered as a single dimensional concept. This paper divides trust into goodwill trust and competence trust, and we explore the ways in which trust affects acceptance of NPPs through structural equation modeling. A survey of 491 people was conducted in Haiyan County, China, where the Qinshan nuclear power plant is located. We find that goodwill trust is significantly correlated with competence trust, and each can indirectly promote residents’ acceptance of NPPs but by different paths. Goodwill trust improves acceptance of NPPs by decreasing risk perception, while competence trust improves acceptance of NPPs by increasing benefit perception. However, the associations between goodwill trust and benefit perception, competence trust and risk perception, are not significant. [ABSTRACT FROM AUTHOR]

In this paper, we present an automatic system for the analysis and labeling of structural scenes, floor plan drawings in Computer-aided Design (CAD) format. The proposed system applies a fusion strategy to detect and recognize various components of CAD floor plans, such as walls, doors, windows and other ambiguous assets. Technically, a general rule-based filter parsing method is fist adopted to extract effective information from the original floor plan. Then, an image-processing based recovery method is employed to correct information extracted in the first step. Our proposed method is fully automatic and real-time. Such analysis system provides high accuracy and is also evaluated on a public website that, on average, archives more than ten thousands effective uses per day and reaches a relatively high satisfaction rate. [ABSTRACT FROM AUTHOR]

Background: The population of Ghana is increasingly becoming urbanized with about 70% of the estimated 27 million people living in urban and peri-urban areas. Nonetheless, eight out of the ten regions in Ghana remain predominantly rural where only 32% of the national health sector workforce works. Moreover, the rural-urban disparities in the density of health tutors (staff responsible for pre-service training of health professionals) are enormous. This paper explores perceived needs of health tutors in rural and urban health training institutions in Ghana. Methods: This is a descriptive qualitative study conducted in the Greater Accra and Northern regions of Ghana. The Study used the deductive thematic and sub-thematic analysis approaches. Five health training institutions were randomly sampled, and 72 tutors engaged in separate focus group discussions with an average size of 14 participants per group in each training institution. Results: Perceived rural-urban disparities among health tutors were found in the payment of extra duty allowances; school infrastructure including libraries and internet connectivity; staff accommodation; and opportunities for scholarships and higher education. Health tutors in rural areas generally expressed more frustration with these work conditions than those in urban areas. Conclusions: There is the need to initiate and sustain work incentives that promote motivation of rural health tutors to control ongoing rural-urban migration of qualified staff. It is recommended the following incentives be prioritized to promote retention of qualified health tutors in rural health training schools: payment of research, book and rural allowances; early promotion of rural staff; prioritizing rural tutors for scholarships, and introduction of national best health tutor awards. [ABSTRACT FROM AUTHOR]

Modern cities are engines of production, innovation, and growth. However, urbanization also increases both local and global pollution from household consumption and firms’ production. Do emissions change proportionately to city size or does pollution tend to outpace or lag urbanization? Do emissions scale differently with population versus economic growth or are emissions, population, and economic growth inextricably linked? How are the scaling relationships between emissions, population, and economic growth affected by environmental regulation? This paper examines the link between urbanization, economic growth and pollution using data from Metropolitan Statistical Areas (MSAs) in the United States between 1999 and 2011. We find that the emissions of local air pollution in these MSAs scale according to a ¾ power law with both population size and gross domestic product (GDP). However, the monetary damages from these local emissions scale linearly with both population and GDP. Counties that have previously been out of attainment with the local air quality standards set by the Clean Air Act show an entirely different relationship: local emissions scale according to the square root of population, while the monetary damages from local air pollution follow a 2/3rds power law with population. Counties out of attainment are subject to more stringent emission controls; we argue based on this that enforcement of the Clean Air Act induces sublinear scaling between emissions, damages, and city size. In contrast, we find that metropolitan GDP scales super-linearly with population in all MSAs regardless of attainment status. Summarizing, our findings suggest that environmental policy limits the adverse effects of urbanization without interfering with the productivity benefits that manifest in cities. [ABSTRACT FROM AUTHOR]

Overweight and obesity are highly prevalent in the population of the United States, affecting roughly 2/3 of Americans. These diseases, along with their associated conditions, are a major burden on the healthcare industry in terms of both dollars spent and effort expended. Volitional weight loss is attempted by many, but weight regain is common. The ability to predict which patients will lose weight and successfully maintain the loss versus those prone to regain weight would help ease this burden by allowing clinicians the ability to skip treatments likely to be ineffective. In this paper we introduce a new windowed approach to the persistent homology signal processing algorithm that, when paired with a modified, semimetric version of the Hausdorff distance, can differentiate the two groups where other commonly used methods fail. The novel approach is tested on accelerometer data gathered from an ongoing study at the University of Michigan. While most standard approaches to signal processing show no difference between the two groups, windowed persistent homology and the modified Hausdorff semimetric show a clear separation. This has significant implications for clinical decision making and patient care. [ABSTRACT FROM AUTHOR]

As a sustainable transportation mode, high-speed railway (HSR) has become an efficient way to meet the huge travel demand. However, due to the high acquisition and maintenance cost, it is impossible to build enough infrastructure and purchase enough train-sets. Great efforts are required to improve the transport capability of HSR. The utilization efficiency of train-sets (carrying tools of HSR) is one of the most important factors of the transport capacity of HSR. In order to enhance the utilization efficiency of the train-sets, this paper proposed a train-set circulation optimization model to minimize the total connection time. An innovative two-stage approach which contains segments generation and segments combination was designed to solve this model. In order to verify the feasibility of the proposed approach, an experiment was carried out in the Beijing-Tianjin passenger dedicated line, to fulfill a 174 trips train diagram. The model results showed that compared with the traditional Ant Colony Algorithm (ACA), the utilization efficiency of train-sets can be increased from 43.4% (ACA) to 46.9% (Two-Stage), and 1 train-set can be saved up to fulfill the same transportation tasks. The approach proposed in the study is faster and more stable than the traditional ones, by using which, the HSR staff can draw up the train-sets circulation plan more quickly and the utilization efficiency of the HSR system is also improved. [ABSTRACT FROM AUTHOR]

This paper investigates how the encouragement of entrepreneurship within university research labs relates with research activities, research outputs, and early doctorate careers. Utilizing a panel survey of 6,840 science & engineering doctoral students at 39 R1 research universities, this study shows that entrepreneurship is widely encouraged across university research labs, ranging from 54% in biomedical engineering to 18% in particle physics, while only a small share of labs openly discourage entrepreneurship, from approximately 3% in engineering to approximately 12% in the life sciences. Within fields, there is no difference between labs that encourage entrepreneurship and those that do not with respect to basic research activity and the number of publications. At the same time, labs that encourage entrepreneurship are significantly more likely to report invention disclosures, particularly in engineering where such labs are 41% more likely to disclose inventions. With respect to career pathways, PhDs students in labs that encourage entrepreneurship do not differ from other PhDs in their interest in academic careers, but they are 87% more likely to be interested in careers in entrepreneurship and 44% more likely to work in a startup after graduation. These results persist even when accounting for individuals’ pre-PhD interest in entrepreneurship and the encouragement of other non-academic industry careers. [ABSTRACT FROM AUTHOR]

Stock price prediction is an important and challenging problem in stock market analysis. Existing prediction methods either exploit autocorrelation of stock price and its correlation with the supply and demand of stock, or explore predictive indictors exogenous to stock market. In this paper, using transaction record of stocks with identifier of traders, we introduce an index to characterize market confidence, i.e., the ratio of the number of traders who is active in two successive trading days to the number of active traders in a certain trading day. Strong Granger causality is found between the index of market confidence and stock price. We further predict stock price by incorporating the index of market confidence into a neural network based on time series of stock price. Experimental results on 50 stocks in two Chinese Stock Exchanges demonstrate that the accuracy of stock price prediction is significantly improved by the inclusion of the market confidence index. This study sheds light on using cross-day trading behavior to characterize market confidence and to predict stock price. [ABSTRACT FROM AUTHOR]

Current models of bilateral trade neglect the effects of income distribution. This paper addresses the issue by accounting for non-homothetic consumer preferences and hence investigating the role of income distribution in the context of the gravity model of trade. A theoretically justified gravity model is estimated for disaggregated trade data (Dollar volume is used as dependent variable) using a sample of 104 exporters and 108 importers for 1980–2003 to achieve two main goals. We define and calculate new measures of income distribution similarity and empirically confirm that greater similarity of income distribution between countries implies more trade. Using distribution-based measures as a proxy for demand similarities in gravity models, we find consistent and robust support for the hypothesis that countries with more similar income-distributions trade more with each other. The hypothesis is also confirmed at disaggregated level for differentiated product categories. [ABSTRACT FROM AUTHOR]

In geo-statistics, the Durbin-Watson test is frequently employed to detect the presence of residual serial correlation from least squares regression analyses. However, the Durbin-Watson statistic is only suitable for ordered time or spatial series. If the variables comprise cross-sectional data coming from spatial random sampling, the test will be ineffectual because the value of Durbin-Watson’s statistic depends on the sequence of data points. This paper develops two new statistics for testing serial correlation of residuals from least squares regression based on spatial samples. By analogy with the new form of Moran’s index, an autocorrelation coefficient is defined with a standardized residual vector and a normalized spatial weight matrix. Then by analogy with the Durbin-Watson statistic, two types of new serial correlation indices are constructed. As a case study, the two newly presented statistics are applied to a spatial sample of 29 China’s regions. These results show that the new spatial autocorrelation models can be used to test the serial correlation of residuals from regression analysis. In practice, the new statistics can make up for the deficiencies of the Durbin-Watson test. [ABSTRACT FROM AUTHOR]