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A Bayesian Spatial Interaction Model Variant of the Poisson Pseudo-Maximum Likelihood Estimator

In: Spatial Econometric Interaction Modelling

Author

Listed:
  • James P. LeSage

    (Texas State University)

  • Esra Satici

    (General Directorate of Turkish Highways)

Abstract

There are several econometric advantages to the Poisson pseudo-maximum likelihood (PPML) approach to estimating relationships involving flows (Santos Silva and Tenreyro 2010). One is that the coefficients on logged explanatory variables (X) in the (exponential) relationship involving non-logged flow magnitudes as the dependent variable (y) can be interpreted as the elasticity of the conditional expectation of y i with respect to X i .

Suggested Citation

  • James P. LeSage & Esra Satici, 2016. "A Bayesian Spatial Interaction Model Variant of the Poisson Pseudo-Maximum Likelihood Estimator," Advances in Spatial Science, in: Roberto Patuelli & Giuseppe Arbia (ed.), Spatial Econometric Interaction Modelling, chapter 0, pages 121-143, Springer.
  • Handle: RePEc:spr:adspcp:978-3-319-30196-9_7
    DOI: 10.1007/978-3-319-30196-9_7
    as

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