Abstract
Alonso's Theory of Movements is a widely applicable Spatial Interaction Model, describing an equilibrium of inflows and outflows. Based on a survey of estimation attempts in the past, we conclude that econometric estimation of the so-called systemic parameters is somewhat problematic. In this paper we describe a new estimation method, using instrumental variables which are derived from the model. The distance deterrence parameter and the unobserved balancing factors can be estimated first, with known methods. The remaining parameters can be estimated in an iterative regression procedure, using instruments for the balancing factors. These instruments are derived as the predicted values of the balancing factors, based on the last obtained parameter estimates.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
