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Gravity, distance, and traffic flows in Mexico

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  • Duran-Fernandez, Roberto
  • Santos, Georgina

Abstract

This paper presents an econometric analysis that compares the performance of different measures of distance in a gravity model using state data for Mexico. The estimation shows that at this geographic scale, the definition of distance does not affect the explanatory power of the model significantly. However, time-based definitions of distance have a marginal improvement on the model fit in comparison to length-based measures. When geographic specific fixed effects are unknown, the model shows that distance measured as road network distance is a better predictor. The paper concludes that time-based definitions of distance present several advantages in comparison to traditional length-based definitions. However, at large geographic scales, where relative distances between every geographic unit are long, the use of length-based distance instead of time-based distance to approximate travel costs generates similar results.

Suggested Citation

  • Duran-Fernandez, Roberto & Santos, Georgina, 2014. "Gravity, distance, and traffic flows in Mexico," Research in Transportation Economics, Elsevier, vol. 46(C), pages 30-35.
    • Handle: RePEc:eee:retrec:v:46:y:2014:i:c:p:30-35
    DOI: 10.1016/j.retrec.2014.09.003
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    References listed on IDEAS

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    1. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    2. Duran-Fernandez, Roberto & Santos, Georgina, 2014. "A GIS model of the National Road Network in Mexico," Research in Transportation Economics, Elsevier, vol. 46(C), pages 36-54.
    3. Holger C. Wolf, 2000. "Intranational Home Bias In Trade," The Review of Economics and Statistics, MIT Press, vol. 82(4), pages 555-563, November.
    4. Helen Couclelis, 2000. "From Sustainable Transportation to Sustainable Accessibility: Can We Avoid a New Tragedy of the Commons?," Advances in Spatial Science, in: Donald G. Janelle & David C. Hodge (ed.), Information, Place, and Cyberspace, chapter 20, pages 341-356, Springer.
    5. Claudio E.Montenegro & Isidro Soloaga, 2006. "Nafta´s trade efects: new evidence with a gravity model," Estudios de Economia, University of Chile, Department of Economics, vol. 33(1 Year 20), pages 45-63, June.
    6. McCallum, John, 1995. "National Borders Matter: Canada-U.S. Regional Trade Patterns," American Economic Review, American Economic Association, vol. 85(3), pages 615-623, June.
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    Citations

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    Cited by:

    1. 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.
    2. Sabina Buczkowska & Nicolas Coulombel & Matthieu de Lapparent, 2015. "Euclidean distance versus travel time in business location: A probabilistic mixture of hurdle-Poisson models," ERSA conference papers ersa15p1060, European Regional Science Association.
    3. Sabina Buczkowska & Nicolas Coulombel & Matthieu Lapparent, 2019. "A comparison of Euclidean Distance, Travel Times, and Network Distances in Location Choice Mixture Models," Networks and Spatial Economics, Springer, vol. 19(4), pages 1215-1248, December.
    4. Ayaz Zeynalov, 2017. "The gravity of institutions in a resource-rich country: the case of Azerbaijan," International Economics and Economic Policy, Springer, vol. 14(2), pages 239-261, April.
    5. Tanya Suhoy & Yotam Sofer, 2019. "Getting to Work in Israel: Locality and Individual Effects," Bank of Israel Working Papers 2019.02, Bank of Israel.
    6. Tsiotas, Dimitrios, 2021. "Drawing indicators of economic performance from network topology: The case of the interregional road transportation in Greece," Research in Transportation Economics, Elsevier, vol. 90(C).

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    More about this item

    Keywords

    Gravity model; Distance measures; Time-based distance; Length-based distance; Travel costs; Mexico;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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