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 the spatial and temporal correlations across observations, making the model more behaviorally convincing and applicable to circumstances where a threedimensional 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 though vehicle ownership is associated with higher crash per capita 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.
INTRODUCTIONIn transportation studies and other regional analyses, many variables relate. If dependent variables are co-dependent, a simultaneous equation model (SEM) is appropriate. In other cases, these variables are simply correlated in their regression error terms, and a seemingly unrelated regression (SUR) approach becomes more reasonable. Some transportation examples include: (1) trade flows by different industries (Egger and Pfaffermayr 2004), (2) sales impacts of highway bypasses on different industry sectors across cities and over time (Srinivasan and Kockelman 2002), and (3) travel demand induced by road capacity increases (Noland, 2001). In addition, observations are often panel data with spatial interaction: The same units are observed for multiple periods, and nearby units tend to have stronger correlations. Previous models are incapable of including all these correlated effects. Thus, the primary motivation for -and the most important contribution of -this study are an econometric model and estimation techniques that recognize all these effects.In this study, correlations across equations are specified in a general way: temporal correlation across observations is assumed to be a random-effect, and spatial effects are incorporated via a spatial autoregressive (SAR) component in the error term. The estimation techniques are a mixture of generalized least squares (GLS) and maximum likelihood estimation (MLE) and can handle these complicated correlation patterns. The overall methodology is an important extension to existing studies and may serve as a useful tool for future work.The model is applied for analysis of city-level severe and non-severe crash rates (per capita) across China. Whil...