In the framework of spatial econometric interaction models for origin-destination flows, we develop an estimation method for the case when the list of origins may be distinct from the list of destinations, and when the origin-destination matrix may be sparse. The proposed model resembles a weighted version of the one of LeSage and Pace (2008) and we are able to retain most of the eﬀiciency gains associated with the matrix form estimation, which we illustrate for the maximum likelihood estimator. We also derive computationally feasible tests for the coherence of the estimation results and present an eﬀicient approximation of the conditional expectation of the flows.
spatial econometric interaction models; zero flow problem;
- C01: Econometrics
- C21: Cross-Sectional Models • Spatial Models • Treatment Effect Models • Quantile Regressions
Lukas Dargel, and Christine Thomas-Agnan, “A generalized framework for estimating spatial econometric interaction models”, TSE Working Paper, n. 22-1312, February 2022.
TSE Working Paper, n. 22-1312, February 2022