A METHOD OF FITTING THE GRAVITY MODEL BASED ON THE POISSON DISTRIBUTION*
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TL;DR
An alternative method for fitting the gravity model is suggested, in which the interaction variable is treated as the outcome of a discrete probability process, whose mean is a function of the size and distance variables.
Abstract
"In this paper, [the authors] suggest an alternative method for fitting the gravity model. In this method, the interaction variable is treated as the outcome of a discrete probability process, whose mean is a function of the size and distance variables. This treatment seems appropriate when the dependent variable represents a count of the number of items (people, vehicles, shipments) moving from one place to another. It would seem to have special advantages where there are some pairs of places between which few items move. The argument will be illustrated with reference to data on the numbers of migrants moving in 1970-1971 between pairs of the 126 labor market areas defined for Great Britain...."