BEHRENS, Kristian; ERTUR, Cem; KOCH, Wilfried - Center for Operations Research and Econometrics (CORE), … - 2007
We propose a quantity-based `dual' version of the gravity equation that yields an estimating equation with both cross-sectional interdependence and spatially lagged error terms. Such an equation can be concisely estimated using spatial econometric techniques. We illustrate this methodology by...