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World map

Shades every country by one of your columns. Country names, ISO codes and World Bank spellings all match, so a World Bank panel maps with nothing asked of you - and anything that does not match is named rather than quietly left off.

What it needs

The intuition

A choropleth colours each country by a value. It is the most persuasive chart in common use and one of the most misleading, for a reason that has nothing to do with the data: it colours AREA, and countries have wildly different areas and populations. Russia and Canada dominate any world map visually while holding a small share of the world's people, so the eye reads geography as magnitude.

When to use it

Cross-country data where where is part of the question: growth, income, inflation, tax take, life expectancy. It is a way of looking at data, not a test - use it before a cross-country regression to see whether the variation is regional, which is exactly the variation a country fixed effect would absorb.

Where the estimator comes from

Each region r is filled with f(v_r) for a value v_r and a colour scale f. The visual weight a region carries is proportional to its projected AREA, not to its population, its economy, or the reliability of its measurement. Projection compounds this: the Mercator projection inflates area by 1/\cos(\phi) at latitude \phi, so Greenland is drawn about fourteen times too large relative to the equator. An equal-area projection removes that specific distortion and leaves the deeper one - that area is the wrong variable - untouched.

What it assumes

Statistical properties

How to read the output

A worked reading

Map total COVID cases and you get a map of population: the United States, India and Brazil are dark because they are large, and the map has told you nothing you did not know. Map cases per 100,000 and the picture rearranges completely, with small European countries darkest. Same data, same chart type, opposite conclusions - and the only difference is dividing by a denominator. That division is the single most important decision in the whole chart, and it is made before the mapping software is opened.

Symptom → diagnosis → what to do

If you see thisIt meansDo this
Large countries dominatingArea encodes nothing but areaCheck you are mapping a rate, not a count
A map of totalsIt will show population, whatever the variableDivide by population
The pattern changing with the classingExpected and under-reportedState the method; show a histogram of the values
Greenland enormousMercatorUse an equal-area projection
Missing countries looking like low valuesThe scale runs into the no-data colourMake no-data visually distinct
Small states invisibleInherent to the encodingAdd a ranked table

Common mistakes

Where to read this properly

See also

Heat map, the same colour-encoding problem on a grid. State and district maps, the same cautions at a finer scale.

Related Maps

Bivariate map · Flow map · India - state map · India - district map

All analyses

Charts

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

Maps

World map · Bivariate map · Flow map · India - state map · India - district map

Explore

Descriptive statistics · Summary by group · Two-way table · Classical statistical tests

Regression

Multiple regression (OLS) · Logit / Probit · Tobit (censored) · Truncated regression · Multinomial logit · Ordered logit / probit · Quantile regression · Poisson / Negative binomial

Time series - one series

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

Time series - several series

Yield curve (Nelson–Siegel / Svensson) · Dynamic factor model · Dynamic regression (ARIMAX) · Structural VAR · VAR · Granger causality · Cointegration · VECM · ARDL & bounds test

Panel data

Panel regression · Panel cointegration tests · Heterogeneous panel: Mean Group & PMG · Gravity model of trade · Dynamic panel GMM · Panel diagnostics · Panel unit-root tests

Multivariate statistics

Principal components (PCA) · Factor analysis · Cluster analysis

Marketing research

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

Causal

Spatial autocorrelation · Spatial regression · Heckman selection · Instrumental variables (2SLS) · Difference-in-differences · Staggered difference-in-differences · Regression discontinuity · Matching & weighting · Oaxaca–Blinder decomposition

Finance & risk

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)

Actuarial

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

Tests & breaks

Monte Carlo experiment · F-test, Wald & Chow · Structural breaks & stability

Machine learning

Regression vs machine learning · Ridge / Lasso / Elastic Net · Random forest · Gradient boosting

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