Applications of Random-Utility-based Multi-region Input-Output Models of Transport and the Spatial Economy

An introduction to random-utility-based multiregional input-output models used for the purpose of spatial economic and transport interaction modelling is provided. The main methodological developments and important results of a dozen applications from the years 1996-2013 are described. This is followed by an outlook of potential future directions. Further research is mainly needed in five areas: (a) overall validation of the method, perhaps through back-casting applications on infrastructure plans with observed trade impacts; (b) extensions of trade coefficient models to add realism and improve accuracy; (c) the use of multi-scale modelling to capture interdependencies between geographical scales and to improve the representation of exports and imports; (d) improvements in the representation of price effects, as well as innovation and technological progress, by way of variable technical coefficients; and (e) a deeper investigation of the algorithm used to include elastic selling prices.