A Generalized Cross-Entropy approach for modeling spatially correlated counts

This article discusses and applies an information-theoretic framework for incorporating knowledge of the spatial structure in a sample while extracting from it information about processes resulting in count outcomes. The framework, an application of the Generalized Cross-Entropy (GCE) method of estimating count outcome models, allows researchers to incorporate such real-world features as unobserved heterogeneity-with or without spatial clustering-when modeling spatially correlated counts. The information-recovering potential of the approach is investigated using a limited set of simulations. It is then used to study the determinants of counts of homicides recorded in 343 neighborhoods in Chicago, Illinois.