Robust Spatial Autoregressive (Robust SAR) Modeling in the Case of Poverty Percentage in West Java
DOI:
https://doi.org/10.24252/msa.v13i2.61818Keywords:
Poverty, West Java, Robust SAR, SARAbstract
Poverty is a complex problem influenced by various economic and social factors, such as the open unemployment rate, the minimum wage, population density, and the school participation rate. This study aims to model the poverty rate in West Java Province by considering spatial effects and the existence of outliers through the application of Spatial Autoregressive (SAR) and Robust Spatial Autoregressive (Robust SAR) models. Based on the Lagrange Multiplier test, the SAR model is declared suitable for use. However, the presence of outliers in the data necessitated the use of a robust approach to obtain more accurate results. The analysis showed that the Robust SAR model had a coefficient of determination of 81.53%, higher than that of the SAR model at 77.48%, making it a better model for explaining variations in poverty levels. Of the four independent variables, only School Participation Rate had a significant effect in both models, where an increase in School Participation Rate contributed to a decrease in the poverty rate. This finding confirms the importance of investment in education as a strategic effort to reduce welfare inequality between regions in West Java.
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