A Spatial Dynamic Panel Model with Random Effects Applied to Commuting Times

35 Pages Posted: 28 Jun 2013

See all articles by Olivier Parent

Olivier Parent

University of Cincinnati - Department of Economics

James P. LeSage

Texas State University - McCoy College of Business Administration

Date Written: December 26, 2009

Abstract

A space–time filter is set forth for spatial panel data situations that include random effects. We propose a general spatial dynamic specification that encompasses several spatiotemporal models previously used in the panel data literature. We apply the model to the case of highway induced travel demand. The theory of induced travel demand asserts that increased highway capacity will induce growth in traffic for a number of reasons. Our model allows us to quantify the spatial spillover impacts of increased highway capacity at one location in the network on travel times in neighboring locations and in future time periods.

Keywords: Spatial correlation, Dynamic panels, MCMC estimations

JEL Classification: C11, C21, C23, R11

Suggested Citation

Parent, Olivier and LeSage, James P., A Spatial Dynamic Panel Model with Random Effects Applied to Commuting Times (December 26, 2009). Available at SSRN: https://ssrn.com/abstract=2285690 or http://dx.doi.org/10.2139/ssrn.2285690

Olivier Parent (Contact Author)

University of Cincinnati - Department of Economics ( email )

Carl H. Lindner Hall 2925 Campus Green Drive
PO Box 0371
Cincinnati, OH 45221-0211
United States

James P. LeSage

Texas State University - McCoy College of Business Administration ( email )

Finanace and Economics Department
601 University Drive
San Marcos, TX 78666
United States
512-245-0256 (Phone)
512-245-3089 (Fax)

HOME PAGE: http://www.spatial-econometrics.com

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