Robust geographically weighted regression with least absolute deviation method in case of poverty in Java Island

Abstract

Geographically Weighted Regression (GWR) is a development of an Ordinary Least Squares (OLS) regression which is quite effective in estimating spatial non-stationary data. On the GWR models, regression parameters are generated locally, each observation has a unique regression coefficient. Parameter estimation process in GWR uses Weighted Least Squares (WLS). But when there are outliers in the data, the parameter estimation process with WLS produces estimators which are not efficient. Hence, this study uses a robust method called Least Absolute Deviation (LAD), to estimate the parameters of GWR model in the case of poverty in Java Island. This study concludes that GWR model with LAD method has a better performance.