The consequences of spatial effects on discrete choice models have not been well established. Various ad hoc workarounds have been proposed to mitigate potential estimation problems. This paper employs Monte Carlo simulation to investigate the severity of the problems introduced by spatial...

A discrete choice dynamic model was used to predict land use change for an area in Panama. Our results show not only that our modeling technique performs better than static models, but it is also superior to previous attempts to model land use change in a dynamic fashion.