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The spatial decay in commuting probabilities: employment potential vs. commuting gravity


  • Ahlfeldt, Gabriel M.
  • Wendland, Nicolai


We show that an employment potential capitalisation model, which establishes a spatial relationship between the price of land and the spatial distribution of employment through a transport matrix, produces estimates of the spatial decay in bilateral commuting probabilities that are very close to the decay observed in commuting data.

Suggested Citation

  • Ahlfeldt, Gabriel M. & Wendland, Nicolai, 2015. "The spatial decay in commuting probabilities: employment potential vs. commuting gravity," LSE Research Online Documents on Economics 65023, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:65023

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    References listed on IDEAS

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    2. Combes, Pierre-Philippe & Duranton, Gilles & Gobillon, Laurent, 2012. "The Costs of Agglomeration: Land Prices in French Cities," IZA Discussion Papers 7027, Institute of Labor Economics (IZA).
    3. Liv Osland & Inge Thorsen, 2008. "Effects on Housing Prices of Urban Attraction and Labor-Market Accessibility," Environment and Planning A, , vol. 40(10), pages 2490-2509, October.
    4. McArthur, David Philip & Kleppe, Gisle & Thorsen, Inge & Ubøe, Jan, 2011. "The spatial transferability of parameters in a gravity model of commuting flows," Journal of Transport Geography, Elsevier, vol. 19(4), pages 596-605.
    5. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
    6. Santos Silva, J.M.C. & Tenreyro, Silvana, 2010. "On the existence of the maximum likelihood estimates in Poisson regression," Economics Letters, Elsevier, vol. 107(2), pages 310-312, May.
    7. Wrede, Matthias, 2015. "A continuous spatial choice logit model of a polycentric city," Regional Science and Urban Economics, Elsevier, vol. 53(C), pages 68-73.
    8. Camarero, Mariam & Gómez, Estrella & Tamarit, Cecilio, 2014. "Is the ‘euro effect’ on trade so small after all? New evidence using gravity equations with panel cointegration techniques," Economics Letters, Elsevier, vol. 124(1), pages 140-142.
    9. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    10. Gabriel Ahlfeldt, 2011. "If Alonso Was Right: Modeling Accessibility And Explaining The Residential Land Gradient," Journal of Regional Science, Wiley Blackwell, vol. 51(2), pages 318-338, May.
    11. David Philip McArthur & Liv Osland & Inge Thorsen, 2012. "Spatial Transferability of Hedonic House Price Functions," Regional Studies, Taylor & Francis Journals, vol. 46(5), pages 597-610, August.
    12. Erich Weiss, 2004. "Replacing a combined tax on land and buildings’ with a simplified land value tax’ in the federal republic of germany," International Journal of Strategic Property Management, Taylor & Francis Journals, vol. 8(4), pages 241-245, November.
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    Cited by:

    1. Peter Haller & Daniel F. Heuermann, 2020. "Opportunities and competition in thick labor markets: Evidence from plant closures," Journal of Regional Science, Wiley Blackwell, vol. 60(2), pages 273-295, March.
    2. Moises Lenyn Obaco Alvarez & Vicente Royuela & Xavier Vítores, 2016. "Computing functional urban areas using a hierarchical travel time approach," ERSA conference papers ersa16p238, European Regional Science Association.
    3. Gabriel M Ahlfeldt & Arne Feddersen, 2018. "From periphery to core: measuring agglomeration effects using high-speed rail," Journal of Economic Geography, Oxford University Press, vol. 18(2), pages 355-390.
    4. Mathilde Poulhes, 2017. "From Latin Quarter to Montmartre Investigating Parisian Real-Estate Prices," Working Papers 2017-13, Center for Research in Economics and Statistics.
    5. Mulalic, Ismir & Rouwendal, Jan, 2020. "Does improving public transport decrease car ownership? Evidence from a residential sorting model for the Copenhagen metropolitan area," Regional Science and Urban Economics, Elsevier, vol. 83(C).
    6. KONDO Keisuke, 2020. "A Structural Estimation of the Disutility of Commuting," Discussion papers 20031, Research Institute of Economy, Trade and Industry (RIETI).

    More about this item


    accessibility; commuting; employment; gravity; potential;

    JEL classification:

    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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