Intranational Home Bias in the Presence of Wholesalers, Hub-spoke Structures and Multimodal Transport Deliveries (original) (raw)

Spatial Economic Analysis, 2015

Abstract

When modeling interregional flows it is standard to identify the origin and destination of a flow with the point of production and consumption. However, the presence of hub-spoke structures or multimodal flows may introduce bias, such as being an additional source for cross-sectional correlation between dyadic flows. The aim of this paper is to model inter-provincial flows within a country (Spain) considering this potential bias using a novel dataset with fifty inter-provincial flows and four transport modes. We then feed this dataset into various specifications of a gravity model that incorporates cross-sectional dependence attributable to hub-spoke structures.

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