IDEAS home Printed from https://ideas.repec.org/a/eee/transa/v43y2009i2p105-116.html
   My bibliography  Save this article

Gravity model estimation with proxy variables and the impact of endogeneity on transportation planning

Author

Listed:
  • de Grange, Louis
  • Troncoso, Rodrigo
  • Ibeas, Angel
  • González, Felipe

Abstract

This study presents an alternative method for estimating gravity models by multiple linear regression that is based on proxy variables, thus circumventing the endogeneity problems arising when least-squares estimators are used. The proxy variable approach generates consistent estimators for a gravity model without endogeneity bias. The presence of endogeneity is tested for using statistical tests developed specifically for our application. We conclude that proxy variables eliminate the endogeneity and produce consistent estimators in gravity models estimated using least squares. We also find, however, that endogeneity bias has no significant impact either on gravity model prediction or on urban transportation system planning processes based on such models.

Suggested Citation

  • de Grange, Louis & Troncoso, Rodrigo & Ibeas, Angel & González, Felipe, 2009. "Gravity model estimation with proxy variables and the impact of endogeneity on transportation planning," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(2), pages 105-116, February.
    • Handle: RePEc:eee:transa:v:43:y:2009:i:2:p:105-116
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0965-8564(08)00142-0
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. S. C. Fang & H.-S. J. Tsao, 1995. "Linearly-Constrained Entropy Maximization Problem with Quadratic Cost and Its Applications to Transportation Planning Problems," Transportation Science, INFORMS, vol. 29(4), pages 353-365, November.
    2. T. Abrahamsson & L. Lundqvist, 1999. "Formulation and Estimation of Combined Network Equilibrium Models with Applications to Stockholm," Transportation Science, INFORMS, vol. 33(1), pages 80-100, February.
    3. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    4. Tommi Orpana & Jouko Lampinen, 2003. "Building Spatial Choice Models from Aggregate Data," Journal of Regional Science, Wiley Blackwell, vol. 43(2), pages 319-348, May.
    5. Gonçalves, Mirian Buss & de Cursi, José Eduardo Souza, 2001. "Parameter estimation in a trip distribution model by random perturbation of a descent method," Transportation Research Part B: Methodological, Elsevier, vol. 35(2), pages 137-161, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Philipp Marek & Mirko Titze & Clemens Fuhrmeister & Ulrich Blum, 2017. "R&D collaborations and the role of proximity," Regional Studies, Taylor & Francis Journals, vol. 51(12), pages 1761-1773, December.
    2. Louis Grange & Angel Ibeas & Felipe González, 2011. "A Hierarchical Gravity Model with Spatial Correlation: Mathematical Formulation and Parameter Estimation," Networks and Spatial Economics, Springer, vol. 11(3), pages 439-463, September.
    3. Boshuai Zhao & Juliang Zhang & Wenchao Wei, 2019. "Impact of Time Restriction and Logistics Sprawl on Urban Freight and Environment: The Case of Beijing Agricultural Freight," Sustainability, MDPI, vol. 11(13), pages 1-17, July.
    4. Louis Grange & Felipe González & Ignacio Vargas & Rodrigo Troncoso, 2015. "A Logit Model With Endogenous Explanatory Variables and Network Externalities," Networks and Spatial Economics, Springer, vol. 15(1), pages 89-116, March.
    5. Fuhrmeister, Clemens & Titze, Mirko & Blum, Ulrich & Marek, Philipp, 2014. "Does Proximity Matter in the Choice of Partners in Collaborative R&D Projects? – An Empirical Analysis of Granted Projects in Germany," IWH Discussion Papers 12/2014, Halle Institute for Economic Research (IWH).
    6. Mohsen Nazem & Martin Trépanier & Catherine Morency, 2015. "Revisiting the destination ranking procedure in development of an Intervening Opportunities Model for public transit trip distribution," Journal of Geographical Systems, Springer, vol. 17(1), pages 61-81, January.
    7. Tanya Suhoy & Yotam Sofer, 2019. "Getting to Work in Israel: Locality and Individual Effects," Bank of Israel Working Papers 2019.02, Bank of Israel.
    8. Beata Udvari, 2016. "The Aid for Trade initiative and the export performance of the Iberian EU-countries," IWE Working Papers 225, Institute for World Economics - Centre for Economic and Regional Studies.
    9. Hu, Xinlei & Wang, Xiaokun (Cara) & Ni, Linglin & Shi, Feng, 2022. "The impact of intercity economic complementarity on HSR volume in the context of megalopolization," Journal of Transport Geography, Elsevier, vol. 98(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Louis Grange & Felipe González & Juan Muñoz & Sebastián Raveau, 2014. "An Improved Stirling Approximation for Trip Distribution Models," Networks and Spatial Economics, Springer, vol. 14(3), pages 531-548, December.
    2. Louis Grange & Angel Ibeas & Felipe González, 2011. "A Hierarchical Gravity Model with Spatial Correlation: Mathematical Formulation and Parameter Estimation," Networks and Spatial Economics, Springer, vol. 11(3), pages 439-463, September.
    3. Cooray, Arusha, 2011. "The role of the government in financial sector development," Economic Modelling, Elsevier, vol. 28(3), pages 928-938, May.
    4. Campbell, Randall C. & Nagel, Gregory L., 2016. "Private information and limitations of Heckman's estimator in banking and corporate finance research," Journal of Empirical Finance, Elsevier, vol. 37(C), pages 186-195.
    5. Herrera, Santiago, 2000. "Determinantes y composición del endeudamiento público en Colombia," IDB Publications (Working Papers) 2110, Inter-American Development Bank.
    6. Thomas A. Garrett & Russell S. Sobel, 2004. "State Lottery Revenue: The Importance of Game Characteristics," Public Finance Review, , vol. 32(3), pages 313-330, May.
    7. Mehzabin Tuli, Farzana & Mitra, Suman & Crews, Mariah B., 2021. "Factors influencing the usage of shared E-scooters in Chicago," Transportation Research Part A: Policy and Practice, Elsevier, vol. 154(C), pages 164-185.
    8. Venkatesh Shankar & Pablo Azar & Matthew Fuller, 2008. "—: A Multicategory Brand Equity Model and Its Application at Allstate," Marketing Science, INFORMS, vol. 27(4), pages 567-584, 07-08.
    9. Giuseppe Croce & Emanuela Ghignoni, 2011. "Overeducation and spatial flexibility in Italian local labour markets," Working Papers in Public Economics 145, University of Rome La Sapienza, Department of Economics and Law.
    10. Cuesta, Lizeth & Ruiz, Yomara, 2021. "Efecto de la globalización sobre la desigualdad. Un estudio global para 104 países usando regresiones cuantílicas [Effect of globalization on inequality. A global study for 104 countries using quan," MPRA Paper 111022, University Library of Munich, Germany.
    11. Peppel-Srebrny, Jemima, 2021. "Not all government budget deficits are created equal: Evidence from advanced economies' sovereign bond markets," Journal of International Money and Finance, Elsevier, vol. 118(C).
    12. Meghamrita Chakraborty, 2023. "Linking Migration, Diversity and Regional Development in India," Journal of Development Policy and Practice, , vol. 8(1), pages 55-72, January.
    13. Jessica M. Mc Lay & Roy Lay-Yee & Barry J. Milne & Peter Davis, 2015. "Regression-Style Models for Parameter Estimation in Dynamic Microsimulation: An Empirical Performance Assessment," International Journal of Microsimulation, International Microsimulation Association, vol. 8(2), pages 83-127.
    14. Susan Woodward, 1982. "Strike Activity and Wage Settlements," UCLA Economics Working Papers 249, UCLA Department of Economics.
    15. Machado, Matilde P., 2001. "Dollars and performance: treating alcohol misuse in Maine," Journal of Health Economics, Elsevier, vol. 20(4), pages 639-666, July.
    16. Michele Fratianni & Francesco Marchionne, 2011. "The Limits to Integration," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume I, chapter 9, Edward Elgar Publishing.
    17. Imperiale, Francesca & Pizzi, Simone & Lippolis, Stella, 2023. "Sustainability reporting and ESG performance in the utilities sector," Utilities Policy, Elsevier, vol. 80(C).
    18. Manganaris, Panayotis & Beccalli, Elena & Dimitropoulos, Panagiotis, 2017. "Bank transparency and the crisis," The British Accounting Review, Elsevier, vol. 49(2), pages 121-137.
    19. Marcela Parada-Contzen & Andrés Riquelme-Won & Felipe Vasquez-Lavin, 2013. "The value of a statistical life in Chile," Empirical Economics, Springer, vol. 45(3), pages 1073-1087, December.
    20. Rodríguez-Pose, Andrés & Tselios, Vassilis & Winkler, Deborah & Farole, Thomas, 2013. "Geography and the Determinants of Firm Exports in Indonesia," World Development, Elsevier, vol. 44(C), pages 225-240.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:43:y:2009:i:2:p:105-116. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.