Spatial model fitting for large datasets with applications to climate and microarray problems

Further, the data in these problems are often subject to various types of structure and, in particular, spatial dependence. Traditional model fitting often fails due to the size of the datasets since it is difficult to not only specify but also to compute with the full covariance matrix describing the spatial dependence.

We propose a very general type of mixed model that has a random spatial component. Recognizing that spatial covariance matrices often exhibit a large number of zero or near-zero entries, covariance tapering is used to force near-zero entries to zero. Then, taking advantage of the sparse nature of such tapered covariance matrices, backfitting is used to estimate the fixed and random model parameters.