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Department of Business and Management Science, Norwegian School of Economics (NHH) Discussion Papers, Department of Business and Management Science, Norwegian School of Economics (NHH)

No 2010/3:
The spatial transferability of parameters in a gravity model of commuting flows

David Philip McArthur (), Gisle Kleppe (), Inge Thorsen () and Jan Ubøe ()

Abstract: This paper studies whether gravity model parameters estimated in one geographic area can give reasonable predictions of commuting flows in another. To do this, three sets of parameters are estimated for geographically proximate yet separate regions in south-west Norway. All possible combinations of data and parameters are considered, giving a total of nine cases. Of particular importance is the distinction between statistical equality of parameters and `practical' equality i.e. are the differences in predictions big enough to matter. A new type test best on the Standardised Root Mean Square Error (SRMSE) and Monte Carlo simulation is proposed and utilised.

Keywords: Gravity model; commuting flows; regional science; (follow links to similar papers)

JEL-Codes: R10; R12; (follow links to similar papers)

26 pages, May 19, 2010

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