Nationwide Freight Generation Models: A Spatial Regression Approach

This paper investigates the application of linear regression models and modeling techniques in predicting freight generation at the national level within the U.S. Specifically, the paper seeks to improve the performance and fit of linear regression models of freight generation. We provide insight into different variable transformation techniques, evaluate the use of spatial regression variables, and apply a spatial regression modeling methodology to correct for spatial autocorrelation. We conclude that the spatial regression model is the preferred specification for freight generation at the national level. The proliferation of Geographic Information Systems (GIS) within planning agencies affords more widespread use of spatial regression and our results indicate this technique would provide improvement to models that have been traditionally limited by insufficient data.