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The Introduction of Dynamic Features in a Random-Utility-Based Multiregional Input-Output Model of Trade, Production, and Location Choice

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  • Huang, Tian
  • Kockelman, Kara M.

Abstract

This study introduces dynamic features into the random-utility-based multiregional input-output (RUBMRIO) model. The RUBMRIO model predicts interzonal trade and travel patterns, as well as business and household location choices, using consumption and production process data. It equilibrates production and trade, labor markets, and transportation networks simultaneously. Multinomial logit models predict the origins of productive inputs, including commute behaviors (for the input of labor). With household locations and expenditures/incomes relatively well-known for the very near future, one can predict current trade patterns by making household consumption, as well as (foreign and domestic) export demands, exogenous to the model, resulting in short-term predictions. The long-run equilibrium, wherein household locations and consumption patterns are endogenous, will differ from this short-term solution.

Suggested Citation

  • Huang, Tian & Kockelman, Kara M., 2008. "The Introduction of Dynamic Features in a Random-Utility-Based Multiregional Input-Output Model of Trade, Production, and Location Choice," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 47(1).
  • Handle: RePEc:ags:ndjtrf:206900
    DOI: 10.22004/ag.econ.206900
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    References listed on IDEAS

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    1. Lofgren, Hans & Robinson, Sherman, 1999. "Spatial networks in multi-region computable general equilibrium models:," TMD discussion papers 35, International Food Policy Research Institute (IFPRI).
    2. Zhao, Yong & Kockelman, Kara M., 2004. "The random-utility-based multiregional input-output model: solution existence and uniqueness," Transportation Research Part B: Methodological, Elsevier, vol. 38(9), pages 789-807, November.
    3. Patrick Canning & Zhi Wang, 2005. "A Flexible Mathematical Programming Model to Estimate Interregional Input–Output Accounts," Journal of Regional Science, Wiley Blackwell, vol. 45(3), pages 539-563, August.
    4. Buckley, Patrick H, 1992. "A Transportation-Oriented Interregional Computable General Equilibrium Model of the United States," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 26(4), pages 331-348, November.
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    Cited by:

    1. Michael Wegener, 2011. "Transport in Spatial Models of Economic Development," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 3, Edward Elgar Publishing.
    2. Wang, Guangmin & Kockelman, Kara M., 2016. "Local Sensitivity Analysis of Forecast Uncertainty in a Random-Utility-Based Multiregional Input-Output Model," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 55(2), August.

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