873 publications from this institution
This paper exposes problems of the commonly used technique of splitting the available data in neural spatial interaction modelling into training, validation, and test sets that are held fixed and warns about drawing too strong conclusions from such static splits. Using a bootstrapping procedure, we compare the uncertainty in the solution stemming from the data splitting with model specific uncertainties such as parameter initialization. Utilizing the Austrian interregional telecommunication traffic data and the differential evolution method for solving the parameter estimation task for a fixed topology of the network model [ i.e. J = 9] this paper illustrates that the variation due to different resamplings is significantly larger than the variation due to different parameter initializations. This result implies that it is important to not over-interpret a model, estimated on one specific static split of the data.(This abstract was borrowed from another version of this item.)
This paper explores the relationship between household income inequality and macroeconomic uncertainty in the United States. Using a novel large-scale macroeconometric model, we shed light on regional disparities of inequality responses to a national uncertainty shock. The results suggest that income inequality decreases in most states, with a pronounced degree of heterogeneity in terms of the dynamic responses. By contrast, some few states, mostly located in the Midwest, display increasing levels of income inequality over time. Forecast error variance and historical decompositions highlight the importance of uncertainty shocks in explaining income inequality in most regions considered. Finally, we explain differences in the responses of income inequality by means of a simple regression analysis. These regressions reveal that the income composition as well as labor market fundamentals determine the directional pattern of the dynamic responses.