Spatial econometric methods for modeling origin destination flows

Spatial interaction models of the gravity type are used in conjunction with sample
data on flows between origin and destination locations to analyse international and
interregional trade, commodity, migration and commuting patterns. The focus is
on the classical log-normal model version and spatial econometric extensions that
have recently appeared in the literature. These new models replace the conventional
assumption of independence between origin-destination flows with formal
approaches that allow for spatial dependence in flow magnitudes. The paper also
discusses problems that arise in applied practice when estimating (log-normal)
spatial interaction models. (authors' abstract)