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Choice-Based Estimation of Alonso's Theory of Movement: Methods and Experiments

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  • Guoxiang Ding
  • Morton E O'Kelly

Abstract

Alonso's theory of movement (ATM) provides a general framework for modeling spatial interaction. Though conceptually elegant, application of this model is limited due to the difficulty in estimating model parameters. In this paper ATM is applied in retail modeling using choice data in a novel way. The approach permits flexibility with regard to model assumptions about flow constraints; that is, the model is neither attraction constrained nor production constrained. Data aggregated to the census ‘block-group’ scale, with network-based travel distances, have been examined to estimate model parameters by pairwise comparisons and ordinary least squares. The expenditure flow is related to the store properties (attractiveness, relative accessibility) and the spatial separation between origins and destinations. Based on our empirical estimate of a key parameter, and assuming that sales increase at a decreasing rate with respect to store size, we deduce that accessibility is inversely related to store size.

Suggested Citation

  • Guoxiang Ding & Morton E O'Kelly, 2008. "Choice-Based Estimation of Alonso's Theory of Movement: Methods and Experiments," Environment and Planning A, , vol. 40(5), pages 1076-1089, May.
  • Handle: RePEc:sae:envira:v:40:y:2008:i:5:p:1076-1089
    DOI: 10.1068/a39129
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    References listed on IDEAS

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    1. Imbens, Guido W, 1992. "An Efficient Method of Moments Estimator for Discrete Choice Models with Choice-Based Sampling," Econometrica, Econometric Society, vol. 60(5), pages 1187-1214, September.
    2. M. E. O’Kelly, 2004. "Isard’s contributions to spatial interaction modeling," Journal of Geographical Systems, Springer, vol. 6(1), pages 43-54, April.
    3. Peter Mueser, 1989. "Measuring the impact of locational characteristics on migration: Interpreting cross-sectional analyses," Demography, Springer;Population Association of America (PAA), vol. 26(3), pages 499-513, August.
    4. Cosslett, Stephen R, 1981. "Maximum Likelihood Estimator for Choice-Based Samples," Econometrica, Econometric Society, vol. 49(5), pages 1289-1316, September.
    5. Tabuchi, Takatoshi, 1984. "The systemic variables and elasticities in Alonso's general, theory of movement," Regional Science and Urban Economics, Elsevier, vol. 14(2), pages 249-264, May.
    6. Lancaster, Tony, 1997. "Bayes WESML Posterior inference from choice-based samples," Journal of Econometrics, Elsevier, vol. 79(2), pages 291-303, August.
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    Cited by:

    1. Chakraborty, A. & Beamonte, M.A. & Gelfand, A.E. & Alonso, M.P. & Gargallo, P. & Salvador, M., 2013. "Spatial interaction models with individual-level data for explaining labor flows and developing local labor markets," Computational Statistics & Data Analysis, Elsevier, vol. 58(C), pages 292-307.

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