A spatial autoregressive Poisson gravity model

Richard Sellner, Manfred M. Fischer, Matthias Koch

Publication: Scientific journalJournal articleResearchpeer-review

13 Citations (Scopus)

Abstract

In this article, a Poisson gravity model is introduced that incorporates spatial dependence
of the explained variable without relying on restrictive distributional assumptions of the
underlying data-generating process. The model comprises a spatially filtered component
including the origin-, destination-, and origin-destination-specific variables and a spatial
residual variable that captures origin- and destination-based spatial autocorrelation. We
derive a two-stage nonlinear least-squares (NLS) estimator (2NLS) that is heteroscedasticity-
robust and, thus, controls for the problem of over- or underdispersion that often
is present in the empirical analysis of discrete data or, in the case of overdispersion, if
spatial autocorrelation is present. This estimator can be shown to have desirable properties
for different distributional assumptions, like the observed flows or (spatially) filtered component
being either Poisson or negative binomial. In our spatial autoregressive (SAR)
model specification, the resulting parameter estimates can be interpreted as the implied
total impact effects defined as the sum of direct and indirect spatial feedback effects. Monte
Carlo results indicate marginal finite sample biases in the mean and standard deviation of
the parameter estimates and convergence to the true parameter values as the sample size
increases. In addition, this article illustrates the model by analyzing patent citation flows
data across European regions. (authors' abstract)
Original languageEnglish
Pages (from-to)180 - 201
JournalGeographical Analysis. An International Journal of Theoretical Geography
Volume45
Issue number2
DOIs
Publication statusPublished - 2013
  • Der Außenhandel der USA mit Staatshandelsländern

    Fink, G., 1990, Länderbericht USA, Studien zur Geschichte und Politik, Bundeszentrale für politische Bildung, Schriftenreihe Band 293/I, S.679-686, Bonn 1990.

    Publication: Chapter in book/Conference proceedingChapter in edited volume

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