Chapter 11 Qualitative statistical models for regional economic analysis

This chapter discusses qualitative statistical models for regional economic analysis. Traditionally, the statistical modeling conducted in regional economic research has focused on the analysis of high-level, metric, or quantitative data measured at the ratio or interval scales. The tradition has its roots in natural science where high-quality data can be obtained under experimental conditions. The chapter reviews the state-of-the-art in qualitative statistical modeling. It focuses on (a) basic model types and their integration; (b) alternative estimation procedures; (c) model assessment and selection procedures; and (d) extended and hybrid forms of the basic models. It also discusses a range of empirical examples to illustrate the current use of qualitative data models in regional economic analysis. These examples focus upon regional variations in the rates of industrial innovation in the United Kingdom, regional quality-of-life and residential preferences in the Netherlands, and a regional industrial accessibility survey conducted in Northern Ireland. The chapter provides a review of several topics that are of central importance to the future potential of qualitative statistical models in regional economic analysis.