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A commuting-based refinement of the contiguity matrix for spatial models, and an application to local police expenditures

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  • Rincke, Johannes

Abstract

One of the main weaknesses of empirical models in regional science and urban economics involving spatial interdependence is the arbitrary nature of the weight matrix. The paper considers a refinement of the commonly used contiguity matrix which exploits information on commuting flows between locations. Within the set of contiguous jurisdictions, the matrix assigns higher weights to localities for which commuting patterns suggest that households would view them as substitute locations to reside in. The concept is then applied to cities and townships in New England. Using the expenditure competition effect on local police spending as an example, we show that commuting-adjusted weighting schemes give estimates which differ substantially from those obtained using a standard contiguity matrix.

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  • Rincke, Johannes, 2010. "A commuting-based refinement of the contiguity matrix for spatial models, and an application to local police expenditures," Regional Science and Urban Economics, Elsevier, vol. 40(5), pages 324-330, September.
    • Handle: RePEc:eee:regeco:v:40:y:2010:i:5:p:324-330
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    4. Firgo, Matthias & Kügler, Agnes, 2014. "Detecting Collusion in Spatially Differentiated Markets," Department of Economics Working Paper Series 188, WU Vienna University of Economics and Business.
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    10. Skidmore, Mark & Reese, Laura & Kang, Sung Hoon, 2012. "Regional analysis of property taxation, education finance reform, and property value growth," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 351-363.
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    12. B. Fingleton & C. Ertur, 2012. "Editorial," Spatial Economic Analysis, Taylor & Francis Journals, vol. 7(1), pages 1-8, March.
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    14. Kotyrlo, Elena, 2016. "Space-time dynamics of fertility and commuting," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 41, pages 78-95.
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