Evaluating recent methods to overcome spatial confounding

Abstract: The concept of spatial confounding is closely connected to spatial regression, although no general definition has been established. A generally accepted idea of spatial confounding in spatial regression models is the change in fixed effects estimates that may occur when spatially correlated random effects collinear with the covariate are included in the model. Different methods have been proposed to alleviate spatial confounding in spatial linear regression models, but it is not clear if they provide correct fixed effects estimates. In this article, we consider some of those proposals to alleviate spatial confounding such as restricted regression, the spatial+ model, and transformed Gaussian Markov random fields. The objective is to determine which one provides the best estimates of the fixed effects. Dowry death data in Uttar Pradesh in 2001, stomach cancer incidence data in Slovenia in the period 1995-2001 and lip cancer incidence data in Scotland between the years 1975-1980 are analyzed. Several simulation studies are conducted to evaluate the performance of the methods in different scenarios of spatial confounding. Results reflect that the spatial+ method seems to provide fixed effects estimates closest to the true value.