Estimation of spatial autoregressive models for origin–destination flows: A partial likelihood approach

Hanbat Jeong, Yanli Lin and Lung-fei Lee

Economics Letters, 2023, vol. 229, issue C

Abstract: We extend LeSage and Pace (2008)’s spatial autoregressive model for origin–destination flows by accommodating two-way fixed effects. A partial likelihood approach is used for estimation by applying an orthogonal transformation to remove fixed effects in the model. The quasi-maximum likelihood (QML) estimator of the partial log-likelihood function is consistent and asymptotically centered normal. Monte Carlo experiments verify this advantage in finite samples. From the U.S. migration flows, significant spatial influences are captured with smaller magnitudes than those from the model without fixed effects.

Keywords: Origin–destination flow; Spatial autoregressive; Fixed effects; Partial likelihood (search for similar items in EconPapers)
JEL-codes: C31 C51 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176523002276
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:229:y:2023:i:c:s0165176523002276

DOI: 10.1016/j.econlet.2023.111202

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().