Spatial regression-based model specifications for exogenous and endogenous spatial interaction

Spatial interaction models represent a class of models that are used for modeling origin destination flow data. The interest in such models is motivated by the need to understand and explain the flows of tangible entities such as persons or commodities or intangible ones such as capital, information or knowledge between regions. The focus here is on the log-normal version of the model. In this context, we consider spatial econometric specifications
that can be used to accommodate two types of dependence scenarios, one involving endogenous interaction and the other exogenous interaction. These model specifications replace the conventional assumption of independence between origin-destination-flows with formal approaches that allow for two different types of spatial dependence in
flow magnitudes. (authors' abstract)