Future directions
nEndogeneity? Correlation between RHS variables and model error
•Potential problem with income and terror
•Reduced problem by use of national variables
•Problem with air linkages
•Instruments:
•Data for neighboring cities
•Physical conditions
•Data being collected by field researchers
•Compare differenced and non-differenced models
nOther variables
•Regional and regime fixed effects?
•Better measures of transport costs?
•Infill versus peripheral development
•Test prediction of flatter density gradient
•Distinguish between simple urban and dynamic urban model