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Incorporating Transportation Network Structure in Spatial Econometric Models of Commodity Flows

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  • James Paul Lesage
  • Wolfgang Polasek

Abstract

Abstract We use a spatial econometric extension of the traditional regression-based gravity model to model commodity flows, focusing on a formal methodology for incorporating information regarding the highway network into the spatial connectivity structure of the spatial autoregressive econometric model. We show that our simple approach to incorporating this information in the model produces improved model fit and higher likelihood function values. Empirical estimates of the relative importance of the different types of origin–destination connectivity between regions indicates that the strongest spatial autoregressive effects arise when both origin and destination regions have neighbouring regions located on the highway network.

Suggested Citation

  • James Paul Lesage & Wolfgang Polasek, 2008. "Incorporating Transportation Network Structure in Spatial Econometric Models of Commodity Flows," Spatial Economic Analysis, Taylor & Francis Journals, vol. 3(2), pages 225-245.
  • Handle: RePEc:taf:specan:v:3:y:2008:i:2:p:225-245 DOI: 10.1080/17421770801996672
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    References listed on IDEAS

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    1. Brian Cushing & Jacques Poot, 2003. "Crossing boundaries and borders: Regional science advances in migration modelling," Papers in Regional Science, Springer;Regional Science Association International, pages 317-338.
    2. Olivier Parent & James Lesage, 2005. "Bayesian Model Averaging for Spatial Econometric Models," Post-Print hal-00375489, HAL.
    3. James P. LeSage & R. Kelley Pace, 2008. "Spatial Econometric Modeling Of Origin-Destination Flows," Journal of Regional Science, Wiley Blackwell, vol. 48(5), pages 941-967.
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    5. Geweke, J, 1993. "Bayesian Treatment of the Independent Student- t Linear Model," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 8(S), pages 19-40, Suppl. De.
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    Citations

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    Cited by:

    1. Liu, Shuangzhe & Ma, Tiefeng & Polasek, Wolfgang, 2014. "Spatial system estimators for panel models: A sensitivity and simulation study," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 101(C), pages 78-102.
    2. Seya, Hajime & Yamagata, Yoshiki & Tsutsumi, Morito, 2013. "Automatic selection of a spatial weight matrix in spatial econometrics: Application to a spatial hedonic approach," Regional Science and Urban Economics, Elsevier, vol. 43(3), pages 429-444.
    3. Laura Márquez-Ramos & Luisa Alamá-Sabater, 2011. "Spanish exports and logistics needs. A spatial marked point pattern approach," ERSA conference papers ersa10p1475, European Regional Science Association.
    4. Adjemian, Michael K. & Cynthia Lin, C.-Y. & Williams, Jeffrey, 2010. "Estimating spatial interdependence in automobile type choice with survey data," Transportation Research Part A: Policy and Practice, Elsevier, pages 661-675.
    5. Luisa Alamá-Sabater & Laura Márquez-Ramos & Celestino Suárez-Burguet & J. Miguel Navarro-Azorín, 2012. "Interregional Trade and Transport Connectivity. An Analysis of Spatial Dependence," Working Papers 2012/20, Economics Department, Universitat Jaume I, Castellón (Spain).
    6. Luisa Alamá Sabater & Laura Marquez Ramos & Celestino Suarez Burguet, 2011. "Regional Trade and Logistics Infrastructure: A Spatial Approach," ERSA conference papers ersa11p1737, European Regional Science Association.
    7. repec:asg:wpaper:1013 is not listed on IDEAS
    8. Ni, Linglin & Wang, Xiaokun (Cara) & Zhang, Dapeng, 2016. "Impacts of information technology and urbanization on less-than-truckload freight flows in China: An analysis considering spatial effects," Transportation Research Part A: Policy and Practice, Elsevier, vol. 92(C), pages 12-25.
    9. Zoltán J. Ács & Lawrence A. Plummer & Ryan Sutter, 2015. "Penetrating the knowledge filter in “rust belt” economies," Chapters,in: Global Entrepreneurship, Institutions and Incentives, chapter 17, pages 320-343 Edward Elgar Publishing.
    10. Katharina Pijnenburg & Konstantin A. Kholodilin, 2014. "Do Regions with Entrepreneurial Neighbours Perform Better? A Spatial Econometric Approach for German Regions," Regional Studies, Taylor & Francis Journals, vol. 48(5), pages 866-882, May.
    11. Llano, C. & De la Mata, T. & Díaz-Lanchas, J. & Gallego, N., 2017. "Transport-mode competition in intra-national trade: An empirical investigation for the Spanish case," Transportation Research Part A: Policy and Practice, Elsevier, vol. 95(C), pages 334-355.
    12. Márquez-Ramos , Laura, 2016. "Regionalism, subnational variation and gravity: A four-country tale," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 35, pages 7-36.

    More about this item

    Keywords

    Commodity flows; spatial autoregression; corridor weights; C11; C13; C21; R11;

    JEL classification:

    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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