A general model of dynamic spatial interactions

Abstract

This Chapter starts by presenting the evolution of static spatial interactions models, from physicalist, place-based models of flows to individual decision models. Specificities of spatial choices are key issues. We expose the complexity approach of dynamic spatial interaction models through the Master Equation, and we specifically discuss the micro-foundations of the individual transition rates. We show that different assumptions have been used in the past. We then propose a new derivation of individual transition rates from a Logit decision model, which can reproduce their previous forms. It actually introduces an endogenous decision rate with a time-scale parameter that describes the pace of decision that remains after having controlled for various incentives. As an illustrative example, we estimate the time-scale parameter using inter-municipal migration flows in Belgium in 2017. With theoretical grounds as well as an empirical example, this chapter opens for sure new avenues for further research.