| Recent availability of satellite-based land-use data sets, including data sets with contiguous spatial coverage over large areas, relatively long temporal coverage, and fine-scale land cover classifications, is providing new opportunities for land-use research. However, care must be used when working with these datasets due to misclassification error, which causes inconsistent parameter estimates in the discrete choice models typically used to model land-use. I therefore adapt the empirical correction methods developed for other contexts (e.g., epidemiology) so that they can be applied to land-use modeling. I then use a Monte Carlo simulation, and an empirical application using actual satellite imagery data from the Northern Great Plains, to compare the results of a traditional model ignoring misclassification to those from models accounting for misclassification. Results from both the simulation and application indicate that ignoring misclassification will lead to biased results. Even seemingly insignificant levels of misclassification error (e.g., 1%) result in biased parameter estimates, which alter marginal effects enough to affect policy inference. At the levels of misclassification typical in current satellite imagery datasets (e.g., as high as 35%), ignoring misclassification can lead to systematically erroneous land-use probabilities and substantially biased marginal effects. The correction methods I propose, however, generate consistent parameter estimates and therefore consistent estimates of marginal effects and predicted land-use probabilities. |
