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EconStatsCraft › Bivariate map
Shades every place by TWO variables at once, using a square colour key instead of a line. The places that are high on one and low on the other get their own colour - and those are exactly the places a pair of separate maps hides, because nobody can hold two maps in their head and difference them.
Put two maps side by side and ask which places are high on the first and low on the second. Nobody can do it. The eye cannot hold one choropleth in memory accurately enough to difference it against another, and the failure is silent - people believe they have compared the maps. A bivariate map does the differencing for you by giving every combination of classes its own colour, so the question becomes a matter of finding a colour rather than of remembering a pattern. The cost is that the key is now two-dimensional, and a reader who mistakes it for a ramp will get the interesting cases precisely backwards.
When the question is about the RELATIONSHIP between two things across places - where schooling is high but investment is not, which districts are poor and also badly connected, where growth and inequality moved together. Two separate maps cannot answer it, because nobody can hold one map in their head while looking at another.
Cut each variable into k classes independently, giving class indices i(x) and j(y) in \{0,\dots,k-1\}. Fix four corner colours c_{00},c_{10},c_{01},c_{11} - low-low, high-x, high-y, high-high - and fill the grid by bilinear interpolation in CIE Lab, c(i,j)=(1-u)(1-v)c_{00}+u(1-v)c_{10}+(1-u)v c_{01}+uv\,c_{11},\qquad u=\tfrac{i}{k-1},\ v=\tfrac{j}{k-1}. Interpolating in Lab rather than in sRGB matters here more than it does for a one-dimensional ramp: the middle of the square is where two hues meet, and a straight line between them through RGB passes through a muddy, unpredictably dark region that makes the centre of the key look like a class of its own.
c(i,j)=\text{bilinear}\big(c_{00},c_{10},c_{01},c_{11}\big),\qquad i=\text{class}(x),\ j=\text{class}(y)
Schooling against investment for 110 countries. The correlation is -0.07 - effectively independent - so the key is populated nearly uniformly: between 10 and 14 countries in each of the nine squares. Twenty-eight sit in the opposite corners, high on one and low on the other, and those are precisely the cases the growth-regression literature argues over. Run the same map with schooling against log initial GDP instead and the diagonal fills up, the warning fires, and the honest conclusion is that one map would have done.
| If you see this | It means | Do this |
|---|---|---|
| Everything on the diagonal | The two variables are nearly the same | Report one shaded map; the warning says so |
| Whole rows of the key empty | Equal-interval classes on a skewed variable | Switch to quantiles |
| Key looks muddy in the middle | Two hues meeting | Try another palette - the corners differ in how they blend |
| Very few places matched | Both variables must be present in the same row | The map drops rows missing either |
| Pattern looks strong but the correlation is near zero | Spatial clustering, not covariation | Test it with a spatial autocorrelation statistic |
| Four classes and unreadable | Sixteen colours | Three each way is the practical limit |
The world map, for one variable at a time. Spatial autocorrelation, for whether a pattern like this is more clustered than chance. Correlation and scatter plots, which answer the same question without the geography.
World map · Flow map · India - state map · India - district map
Line chart · Area chart · Bar chart · Stacked bar · Scatter plot · Bubble chart · Histogram · Box plot · Pie chart · Heat map · Rebased to 100 · Lorenz curve and Gini
World map · Bivariate map · Flow map · India - state map · India - district map
Descriptive statistics · Summary by group · Two-way table · Classical statistical tests
Multiple regression (OLS) · Logit / Probit · Tobit (censored) · Truncated regression · Multinomial logit · Ordered logit / probit · Quantile regression · Poisson / Negative binomial
Time-varying coefficients (Kalman) · Unit root tests · Correlogram (ACF / PACF) · ARIMA / SARIMA · Rolling-origin cross-validation · Theta method · Unobserved components · STL forecasting · Forecast combination · Markov regime switching · Change frequency (resample) · ARCH / GARCH volatility · Decompose & filter · Spectral analysis · Exponential smoothing · Forecast accuracy
Yield curve (Nelson–Siegel / Svensson) · Dynamic factor model · Dynamic regression (ARIMAX) · Structural VAR · VAR · Granger causality · Cointegration · VECM · ARDL & bounds test
Panel regression · Panel cointegration tests · Heterogeneous panel: Mean Group & PMG · Gravity model of trade · Dynamic panel GMM · Panel diagnostics · Panel unit-root tests
Principal components (PCA) · Factor analysis · Cluster analysis
Conjoint analysis · MaxDiff (best–worst scaling) · TURF - reach of a product line · Price sensitivity (Van Westendorp) · Market basket analysis · Perceptual map · Scale reliability (Cronbach’s alpha) · Key driver analysis
Spatial autocorrelation · Spatial regression · Heckman selection · Instrumental variables (2SLS) · Difference-in-differences · Staggered difference-in-differences · Regression discontinuity · Matching & weighting · Oaxaca–Blinder decomposition
Black–Scholes option pricing · Bond price, duration & convexity · Merton distance to default · EMI / home loan planner · CAPM / beta estimation · Multi-factor model · Portfolio optimization · Value at Risk & Expected Shortfall · Performance & drawdown · Time value of money & NPV/IRR · Equity valuation (DDM, FCF, residual income) · Cost of capital (WACC) · Binomial option pricing · Option strategies (payoff & profit) · Forwards, futures & swaps · Credit risk & Basel capital · Extreme value theory (tail risk)
Life table · Life annuity · Life insurance pricing · Chain ladder reserving · Buhlmann credibility · Survival analysis · Mortality graduation · Aggregate loss model · Ruin probability · Multi-state Markov model · Loss severity fitting
Monte Carlo experiment · F-test, Wald & Chow · Structural breaks & stability
Regression vs machine learning · Ridge / Lasso / Elastic Net · Random forest · Gradient boosting
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