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The spatial decay in commuting probabilities: Employment potential vs. commuting gravity

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  • Ahlfeldt, Gabriel M.
  • Wendland, Nicolai

Abstract

We show that an employment potential capitalisation model produces estimates of the spatial decay in employment impact on land prices that are very close to the decay observed in commuting data.

Suggested Citation

  • Ahlfeldt, Gabriel M. & Wendland, Nicolai, 2016. "The spatial decay in commuting probabilities: Employment potential vs. commuting gravity," Economics Letters, Elsevier, vol. 143(C), pages 125-129.
    • Handle: RePEc:eee:ecolet:v:143:y:2016:i:c:p:125-129
    DOI: 10.1016/j.econlet.2016.04.004
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    2. Gabriel M. Ahlfeldt & Stephen J. Redding & Daniel M. Sturm & Nikolaus Wolf, 2015. "The Economics of Density: Evidence From the Berlin Wall," Econometrica, Econometric Society, vol. 83, pages 2127-2189, November.
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    5. McArthur, David Philip & Kleppe, Gisle & Thorsen, Inge & Ubøe, Jan, 2011. "The spatial transferability of parameters in a gravity model of commuting flows," Journal of Transport Geography, Elsevier, vol. 19(4), pages 596-605.
    6. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
    7. Santos Silva, J.M.C. & Tenreyro, Silvana, 2010. "On the existence of the maximum likelihood estimates in Poisson regression," Economics Letters, Elsevier, vol. 107(2), pages 310-312, May.
    8. Wrede, Matthias, 2015. "A continuous spatial choice logit model of a polycentric city," Regional Science and Urban Economics, Elsevier, vol. 53(C), pages 68-73.
    9. Camarero, Mariam & Gómez, Estrella & Tamarit, Cecilio, 2014. "Is the ‘euro effect’ on trade so small after all? New evidence using gravity equations with panel cointegration techniques," Economics Letters, Elsevier, vol. 124(1), pages 140-142.
    10. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    11. Gabriel Ahlfeldt, 2011. "If Alonso Was Right: Modeling Accessibility And Explaining The Residential Land Gradient," Journal of Regional Science, Wiley Blackwell, vol. 51(2), pages 318-338, May.
    12. David Philip McArthur & Liv Osland & Inge Thorsen, 2012. "Spatial Transferability of Hedonic House Price Functions," Regional Studies, Taylor & Francis Journals, vol. 46(5), pages 597-610, August.
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    Cited by:

    1. Peter Haller & Daniel F. Heuermann, 2020. "Opportunities and competition in thick labor markets: Evidence from plant closures," Journal of Regional Science, Wiley Blackwell, vol. 60(2), pages 273-295, March.
    2. Achim Ahrens & Sean Lyons, 2021. "Do rising rents lead to longer commutes? A gravity model of commuting flows in Ireland," Urban Studies, Urban Studies Journal Limited, vol. 58(2), pages 264-279, February.
    3. Kala Seetharam Sridhar & Shivakumar Nayka, 2022. "Determinants of Commute Time in an Indian City," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 16(1), pages 49-75, February.
    4. Gabriel M Ahlfeldt & Arne Feddersen, 2018. "From periphery to core: measuring agglomeration effects using high-speed rail," Journal of Economic Geography, Oxford University Press, vol. 18(2), pages 355-390.
    5. Morgan Ubeda, 2020. "Local Amenities, Commuting Costs and Income Disparities Within Cities," Working Papers halshs-03082448, HAL.
    6. Mulalic, Ismir & Rouwendal, Jan, 2020. "Does improving public transport decrease car ownership? Evidence from a residential sorting model for the Copenhagen metropolitan area," Regional Science and Urban Economics, Elsevier, vol. 83(C).
    7. KONDO Keisuke, 2020. "A Structural Estimation of the Disutility of Commuting," Discussion papers 20031, Research Institute of Economy, Trade and Industry (RIETI).
    8. Seidel, Tobias & Wickerath, Jan, 2020. "Rush hours and urbanization," Regional Science and Urban Economics, Elsevier, vol. 85(C).
    9. Moises Lenyn Obaco Alvarez & Vicente Royuela & Xavier Vítores, 2016. "Computing functional urban areas using a hierarchical travel time approach," ERSA conference papers ersa16p238, European Regional Science Association.
    10. Mathilde Poulhes, 2017. "From Latin Quarter to Montmartre Investigating Parisian Real-Estate Prices," Working Papers 2017-13, Center for Research in Economics and Statistics.
    11. Moreno-Monroy, Ana I. & Schiavina, Marcello & Veneri, Paolo, 2021. "Metropolitan areas in the world. Delineation and population trends," Journal of Urban Economics, Elsevier, vol. 125(C).

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    More about this item

    Keywords

    Accessibility; Commuting; Employment; Gravity; Potential;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R28 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Government Policy
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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