Incorporating spatial interactions in zero-inflated negative binomial models for freight trip generation

This paper formulates a spatial autoregressive zero-inflated negative binomial model for freight trip productions and attractions. The model captures the following freight trip characteristics: count data type, positive trip rates, overdispersion, zero-inflation, and spatial autocorrelation. The spatial autoregressive structure is applied in the negative binomial part of the models to obtain unbiased estimates of the effects of different regressors. Further, we estimate parameters using the full information maximum likelihood estimator. We perform empirical analysis with an establishment based freight survey conducted in Chennai. Separate models are estimated for trips generated by motorised two-wheelers and three-wheelers, and pickups besides an aggregate model. Spatial variables such as road density and indicator of geolocation are insignificant in all the models. In contrast, the spatial autocorrelation is significant in all of the models except for the freight trips attracted and produced by pickups. From a policy standpoint, the elasticity results show the importance of considering spatial autocorrelation. We also highlight the bias due to aggregation of vehicle classes, based on the elasticities.