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Specification and estimation of a spatially and temporally autocorrelated seemingly unrelated regression model: application to crash rates in China

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Abstract

In transportation studies, variables of interest are often influenced by similar factors and have correlated latent terms (errors). In such cases, a seemingly unrelated regression (SUR) model is normally used. However, most studies ignore the potential temporal and spatial autocorrelations across observations, which may lead to inaccurate conclusions. In contrast, the SUR model proposed in this study also considers these correlations, making the model more behaviorally convincing and applicable to circumstances where a three-dimensional correlation exists, across time, space, and equations. An example of crash rates in Chinese cities is used. The results show that incorporation of spatial and temporal effects significantly improves the model. Moreover, investment in transportation infrastructure is estimated to have statistically significant effects on reducing severe crash rates, but with an elasticity of only −0.078. It is also observed that, while vehicle ownership is associated with higher per capita crash rates, elasticities for severe and non-severe crashes are just 0.13 and 0.18, respectively; much lower than one. The techniques illustrated in this study should contribute to future studies requiring multiple equations in the presence of temporal and spatial effects.

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Notes

  1. A crash rate per unit VMT is meaningful in certain respects (primarily in cases where one is interested in roadway design and transport policy impacts on safety levels, given a particular level of VMT). However, the focus of this study is motorization’s effects on the safety and welfare of the Chinese population. Thus, crash rates or losses per capita are of primary interest.

  2. An incidental parameters problem means that, for a fixed-effects model, when T is small, estimators of the constant terms do not converge, leading to inconsistent estimators of all coefficients. [See Lancaster (2000).]

  3. A more formal translation is as follows: (1) Provincial capitals are capitals of autonomous regions and municipalities directly under the Central Government; (2) Big cities are those specifically designated in the State Plan, (3) Medium cities: are important at the regional level, and (4) Small cities are important at the county-level.

  4. These two control variables are potentially endogenous, since higher crash rates may beget greater spending. However, this issue is beyond the scope of the article, and the methods proposed here are perfectly applicable to many situations.

  5. Of course, a 500% increase in vehicle ownership is well outside the sample data range of values, so the model may not be appropriate for such extrapolation. This case is offered simply as an example.

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Acknowledgments

The Benjamin H. Stevens Graduate Fellowship in Regional Science provided financial support for this study. The authors are grateful for the Institute of Transportation Engineering at Tsinghua University’s provision of data sets. Dr. Huapu Lu was generous in sharing data and resolving data issues. The authors also thank Annette Perrone for her administrative and editing assistance.

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Correspondence to Kara M. Kockelman.

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Wang, X., Kockelman, K.M. Specification and estimation of a spatially and temporally autocorrelated seemingly unrelated regression model: application to crash rates in China. Transportation 34, 281–300 (2007). https://doi.org/10.1007/s11116-007-9117-9

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