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Spatial Chow-Lin Methods for Data Completion in Econometric Flow Models

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Author Info

  • Polasek, Wolfgang

    (Department of Economics and Finance, Institute for Advanced Studies, Vienna, Austria, and Faculty of Science, University of Porto, Porto, Portugal)

  • Sellner, Richard

    (Department of Economics and Finance, Institute for Advanced Studies, Vienna, Austria)

Abstract

Flow data across regions can be modeled by spatial econometric models, see LeSage and Pace (2009). Recently, regional studies became interested in the aggregation and disaggregation of flow models, because trade data cannot be obtained at a disaggregated level but data are published on an aggregate level. Furthermore, missing data in disaggregated flow models occur quite often since detailed measurements are often not possible at all observation points in time and space. In this paper we develop classical and Bayesian methods to complete flow data. The Chow and Lin (1971) method was developed for completing disaggregated incomplete time series data. We will extend this method in a general framework to spatially correlated flow data using the cross-sectional Chow-Lin method of Polasek et al. (2009). The missing disaggregated data can be obtained either by feasible GLS prediction or by a Bayesian (posterior) predictive density.

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File URL: http://www.ihs.ac.at/publications/eco/es-255.pdf
File Function: First version, 2010
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Bibliographic Info

Paper provided by Institute for Advanced Studies in its series Economics Series with number 255.

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Length: 28 pages
Date of creation: Sep 2010
Date of revision:
Handle: RePEc:ihs:ihsesp:255

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Related research

Keywords: Missing values in spatial econometrics; MCMC; non-spatial Chow-Lin (CL) and spatial Chow-Lin (SCL) methods; spatial internal flow (SIF) models; origin and destination (OD) data;

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Cited by:
  1. Wolfgang Polasek & Richard Sellner, 2013. "The Does Globalization Affect Regional Growth? Evidence for NUTS-2 Regions in EU-27," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 1, pages 23-65, March.
  2. Wolfgang Polasek & Richard Sellner, 2011. "Does Globalization affect Regional Growth? Evidence for NUTS-2 Regions in EU-27," Working Paper Series 24_11, The Rimini Centre for Economic Analysis.

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