Abstract
While LeSage and Pace (J Reg Sci 48:941–967, 2008) had succeeded in modeling origin–destination (OD) flows by using a spatial econometric approach (spatial econometric gravity model), most studies have not paid appropriate attention towards the treatment of intraregional flows. This study discusses issues regarding intraregional flows within the spatial econometric gravity model, mainly focusing on the definition of internal distances and unobserved intraregional flows, and introduces approaches to deal with associated problems. Specifically, the Expectation-Maximization (EM) algorithm method in Tsutsumi and Tamesue (Environ Plan B 39(6):1006–1015, 2012) and Heckman’s two-step estimation method are discussed for solving the unobserved intraregional flow issue. The results from the application of these methods to Japanese migration data show validity of both approaches. The study also takes an experimental analysis regarding to the difference in nature of interregional and intraregional flows.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsReferences
Badinger H, Egger P (2011) Estimation of higher-order spatial autoregressive cross-section models with heteroscedastic disturbances. Pap Reg Sci 90:213–235
Behrens K, Ertur C, Koch W (2012) ‘Dual’ gravity: using spatial econometrics to control for multilateral resistance. J Appl Econ 27(5):773–794
De la Mata T, Llano C (2012) Spatial pattern and domestic tourism: an econometric analysis using inter-regional monetary flows by type of journey. Pap Reg Sci 91(2):437–470
De la Mata T, Llano C (2013) Social networks and trade of services: modeling interregional flows with spatial and network autocorrelation effects. J Geogr Syst. doi:10.1007/s10109-013-0183-6
Deng M, Athanasopoulos G (2011) Modelling Australian domestic and international inbound travel: a spatial–temporal approach. Tour Manag 32:1075–1084
Falvey R, Foster N, Greenaway D (2009) Trade, imitative ability and intellectual property rights. Rev World Econ 145:373–404
Hansen BE (2000) Sample splitting and threshold estimation. Econometrica 68:575–603
Head K, Mayer T (2000) Non-Europe: the magnitude and causes of market fragmentation in the EU. Weltwirtschaftliches Arch 136:284–314
Head K, Mayer T (2002) Illusory border effects: distance mismeasurement inflates estimates of home bias in trade. Working papers 2002-01, CEPII research center
Heckman JJ (1979) Sample selection bias as a specification error. Econometrica 47(1):153–161
Kelejian HH, Prucha IR (2010) Specification and estimation of spatial autoregressive models with autoregressive and heteroscedastic disturbances. J Econ 157(1):53–67
Kelejian HH, Prucha IR, Yuzefovich E (2004) Instrumental variable estimation of a spatial autoregressive model with autoregressive disturbances: large and small sample results. In: LeSage JP, Pace RK (eds) Advances in econometrics: spatial and spatiotemporal econometrics. Elsevier, New York
Koshizuka T, Kurita O (1991) Approximate formulas of average distances associated with regions and their applications to location problems. Math Program 52:99–123
LeSage JP, Fischer MM (2010) Spatial econometric methods for origin-destination flows. In: Fischer MM, Getis A (eds) Handbook of applied spatial analysis. Springer, Berlin
LeSage JP, Pace RK (2004) Models for spatially dependent missing data. J Real Estate Financ Econ 29:233–254
LeSage JP, Pace RK (2008) Spatial econometric modeling of origin-destination flows. J Reg Sci 48:941–967
LeSage JP, Polasek W (2008) Incorporating transportation network structure in spatial econometric models of commodity flows. Spat Econ Anal 3(2):225–245
Marrocu E, Paci R (2012) Different tourists to different destinations. Evidence from spatial interaction models. Tour Manag 39:71–83. doi:10.1016/j.tourman.2012.10.009
Nitsch V (2000) National borders and international trade: evidence from the European Union. Can J Econ 33:1091–1105
O’Brien RM (2007) A caution regarding rules of thumb for variance inflation factors. Qual Quant 41:673–690
Redding S, Venables AJ (2004) Economic geography and international inequality. J Int Econ 62:53–82
Tsutsumi M, Tamesue K (2012) Intraregional flow problem in spatial econometric model for origin-destination flows. Environ Plan B 39(6):1006–1015
Vaughan R (1984) Approximate formulas for average distances associated with zones. Transp Sci 18:231–244
Wei S (1996) Intra-national versus international trade: how stubborn are nations in global integration? Working paper 5531, National Bureau of Economic Research
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2016 Springer International Publishing Switzerland
About this chapter
Cite this chapter
Tamesue, K., Tsutsumi, M. (2016). Dealing with Intraregional Flows in Spatial Econometric Gravity Models. In: Patuelli, R., Arbia, G. (eds) Spatial Econometric Interaction Modelling. Advances in Spatial Science. Springer, Cham. https://doi.org/10.1007/978-3-319-30196-9_6
Download citation
DOI: https://doi.org/10.1007/978-3-319-30196-9_6
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-30194-5
Online ISBN: 978-3-319-30196-9
eBook Packages: Economics and FinanceEconomics and Finance (R0)