Interpolation performance of a spatio-temporal model with spatially varying coefficients: application to PM10 concentrations in Rio de Janeiro

In this work we present a Bayesian analysis in linear regression models with spatially varying coefficients for modeling and inference in spatio-temporal processes. This kind of model is particularly appealing in situations where the effect of one or more explanatory processes on the response present substantial spatial heterogeneity. We describe for this model how to make inference about the regression coefficients and response processes under two scenarios: when the explanatory processes are known throughout the study region, and when they are known only at the sampling locations. Using a simulation experiment we investigate how parameter inference and interpolation performance are affected by some features of the data and prior distribution that is used. The proposed methodology is used to model the dataset on PM₁₀ levels in the metropolitan region of Rio de Janeiro presented in Paez and Gamerman (2003).