Spatial Econometric Methods for Modeling Origin Destination Flows
James P. LeSage
Texas State University - McCoy College of Business Administration
Manfred M. Fischer
Vienna University of Economics and Business - Institute for Economic Geography and GIScience, Department of Socioeconomics
November 20, 2008
Spatial interaction models of the gravity type are used in conjunction with sample data on flows between origin and destination locations to analyse international and interregional trade, commodity, migration and commuting patterns. The focus is on the classical log-normal model version and spatial econometric extensions that have recently appeared in the literature. These new models replace the conventional assumption of independence between origin-destination flows with formal approaches that allow for spatial dependence in flow magnitudes. The paper also discusses problems that arise in applied practice when estimating (log-normal) spatial interaction models.
Number of Pages in PDF File: 25
Keywords: spatial interaction models, spatial econometrics, origin-destination flows
JEL Classification: C11, C21, O47, R11working papers series
Date posted: November 24, 2008
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