Diagnostic Tools and a Remedial Method for Collinearity in Geographically Weighted Regression

Geographically weighted regression (GWR) is drawing attention as a statistical method to estimate regression models with spatially varying relationships between explanatory variables and a response variable. Local collinearity in weighted explanatory variables leads to GWR coefficient estimates that are correlated locally and across space, have inflated variances, and are at times counterintuitive and contradictory in sign to the global regression estimates. The presence of local collinearity in the absence of global collinearity necessitates the use of diagnostic tools in the local regression model building process to highlight areas in which the results are not reliable for statistical inference. The method of ridge regression can also be integrated into the GWR framework to constrain and stabilize regression coefficients and lower prediction error. This paper presents numerous diagnostic tools and ridge regression in GWR and demonstrates the utility of these techniques with an example using the Columbus crime dataset.