Panel Data GIS Modeling for Post-Disaster Policy Cost Impact
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Solution Overview
Problem
Existing models lack accuracy in predicting the impact of disaster-related policies on post-disaster construction cost variations, necessitating a more precise method to account for various confounding variables and regional-specific effects.
Innovation Solution
A system and method utilizing a panel data model with a difference-in-differences (DiD) estimator, combined with diagnostic tests like Breusch-Pagan and Hausman tests, to select an appropriate model for computing the impact of disaster-related policies, incorporating a geospatial GIS database to analyze construction costs and confounding variables.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If existing models are used to predict post-disaster construction cost variations, then the prediction process is simple, but the accuracy of predictions is insufficient
Solution Approach 1:
The patent segments the prediction model into multiple distinct components: (1) data collection module that gathers construction cost data, disaster data, and policy data; (2) panel data model module that structures the segmented data with region and time dimensions; (3) difference-in-differences estimator module that calculates policy impacts; and (4) confounding variable control module that adjusts for external factors. This segmentation allows each component to be optimized independently while maintaining overall prediction accuracy.
Solution Approach 2:
The patent introduces panel data structure that adds two dimensions to the analysis: regional dimension (different disaster-affected areas) and temporal dimension (pre-disaster and post-disaster time periods). This dimensional expansion enables the model to capture spatial heterogeneity and time-varying effects, significantly improving prediction accuracy by accounting for region-specific and time-specific factors that single-dimension models miss.
2Measurement precision
If a panel data model with diagnostic tests is used, then the accuracy of computing policy impact is improved, but the complexity of model selection increases
Solution Approach 1:
The patent implements preliminary diagnostic tests (Breusch-Pagan test and Hausman test) before selecting the final panel data model specification. The Breusch-Pagan test preliminarily checks for heteroskedasticity and determines whether random effects or fixed effects are appropriate. The Hausman test preliminarily assesses whether fixed effects or random effects model is suitable. These preliminary actions guide the model selection process and ensure appropriate model specification, improving computation accuracy while providing a systematic framework that reduces selection complexity.
Solution Approach 2:
The patent incorporates a feedback mechanism where diagnostic test results directly inform model specification choices. The Breusch-Pagan test results feed into the decision between pooled OLS, random effects, or fixed effects models. The Hausman test results provide feedback on whether to use fixed effects or random effects. This feedback loop ensures that the model selection is data-driven and statistically justified, improving policy impact computation accuracy while maintaining a manageable selection process through clear decision rules.
3Reliability
If confounding variables are accounted for in the analysis, then the unbiasedness of policy impact estimates is improved, but the data collection requirements become more complex
Solution Approach 1:
The patent employs a comprehensive data collection framework that serves multiple functions simultaneously: (1) constructing the panel data structure for regional and temporal analysis; (2) identifying treatment and control groups for difference-in-differences estimation; (3) measuring confounding variables for bias adjustment; and (4) providing inputs for diagnostic tests. This multi-functional data collection approach ensures unbiased policy impact estimates while avoiding redundant data gathering efforts, as the same data infrastructure supports multiple analytical requirements.
Solution Approach 2:
The patent introduces confounding variables as intermediary factors that mediate the relationship between disaster policies and construction cost variations. Variables such as macroeconomic conditions, demographic characteristics, and construction market factors serve as intermediaries that capture unobserved heterogeneity and external shocks. By incorporating these intermediary variables into the panel data model, the analysis controls for confounding effects and produces unbiased policy impact estimates, while the structured data collection process manages the complexity through systematic variable selection.
Data Source
AI summary
Systems and methods for model selection and use are described. An example system includes one or more processors, and a non-transitory memory in communication with the one or more processors, and storing instructions thereon. The instructions, when executed by the one or more processors, are configured to cause the system to receive a selection of a disaster-related policy for analysis; collect data associated with the disaster-related policy. The system is further caused to specify an estimator for computing an impact of the selected disaster-related policy and, using the collected data, select a panel data model of a plurality of panel data models to implement the estimator. The system is further caused to develop a geospatial Geographic Information System (GIS) database comprising the collected data. The system is further caused to, using the selected panel data model and the GIS database, compute the impact of the selected disaster-related policy.


