Modelling the Emergence of Spatial Patterns of Economic Activity
AbstractThis paper describes a simulation model of the spatial development of economic activities over time. The key principle addressed is how spatial patterns of economic activity emerge from decisions of individual firms, which are in turn influenced by the existing spatial configuration. A stylized simulation is presented, in which two types of firms grow at different rates, giving rise to split offs and spatial relocations. The influence of the spatial pattern on individual firms' decisions is implemented in various ways, related to well-known effects such as Jacobs and Marshall externalities described in the economic literature and congestion effects. We demonstrate that different assumptions about the spatial scale of these externalities lead to different spatial configurations. Function concentration (Marshall effects) is more likely to lead to the emergence of subcentres with a specific specialisation. However, the spatial scale of the market and agglomeration effects matters. In particular, if Marshall advantages stretch out over a longer distance, more subcentres emerge. Somewhat surprisingly, congestion seems to have a minor impact on the emerging patterns. The simulation outcomes are intuitively plausible, suggesting that micro-simulation is a promising tool for developing forecasting models to support spatial and economic policies. However, they also articulate the need for validation of the behavioural decision rules, in particular by investigating how growth rates and the spatial scale of externalities differs between different industrial sectors.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Journal of Artificial Societies and Social Simulation in its journal Journal of Artificial Societies and Social Simulation.
Volume (Year): 15 (2012)
Issue (Month): 4 ()
Contact details of provider:
Firm Location; Externalities; Spatial Pattern; Micro-Simulation;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Marcel Ausloos & Herbert Dawid & Ugo Merlone, 2014. "Spatial interactions in agent-based modeling," Papers 1405.0733, arXiv.org.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nigel Gilbert).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.