Challenges and Opportunities Analysing Spatial and Spatial-Temporal Data

Describes four challenges that arise when analysing small area spatial data: spatial dependency, spatial heterogeneity, data sparsity and uncertainty. The special importance of spatial dependency is discussed. Examples of the opportunities for analysis that the methods of this book open up are given. We overview the two main approaches to modelling: Bayesian hierarchical models and Bayesian spatial econometric models. We describe reasons for a Bayesian approach to inference.