When studying topics relating to trade flows, push and pull factors of participated trading cities would be crucial influences on the quality and quantity of trades. The gravity model presented in the paper did include measures of inward and outward resistances as well as a novel measure of city size in order to account for these factors indeed. In addition, however, I am wondering if spatial dependence among nearby trading cities impacts structural parameter and lost-city coordinates estimations?
When studying topics relating to trade flows, push and pull factors of participated trading cities would be crucial influences on the quality and quantity of trades. The gravity model presented in the paper did include measures of inward and outward resistances as well as a novel measure of city size in order to account for these factors indeed. In addition, however, I am wondering if spatial dependence among nearby trading cities impacts structural parameter and lost-city coordinates estimations?