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Computational modeling of city formation

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Author Info
Kurt DeMaagd ()
Scott Moore ()
Abstract

Although a burst of recent research in economics has examined how industries form, a majority of it considers highly simplified models. In this paper, we use computational modeling techniques to expand from traditional, simple, analytically tractable economic models to more complex two dimensional landscapes. Using the basic theories developed in earlier research, we examine what factors cause cities to emerge, including: transportation costs, the percentage of workers in a population, and the elasticity of substitution. These three factors should cause workers and firms to agglomerate, causing cities to emerge out of a scattered population. Copyright Springer Science+Business Media, LLC 2007

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File URL: http://hdl.handle.net/10.1007/s10614-007-9085-3
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Publisher Info
Article provided by Springer in its journal Computational Economics.

Volume (Year): 30 (2007)
Issue (Month): 1 (August)
Pages: 41-56
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Handle: RePEc:kap:compec:v:30:y:2007:i:1:p:41-56

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Web page: http://www.springerlink.com/link.asp?id=100248

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Related research
Keywords: Computational modeling; City formation; Evolutionary algorithms;

References listed on IDEAS
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  1. Kleijnen, J.P.C., 1997. "Experimental design for sensitivity analysis, optimization, and validation of simulation models," Discussion Paper 52, Tilburg University, Center for Economic Research. [Downloadable!]
  2. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June. [Downloadable!] (restricted)
    Other versions:
  3. Krugman, Paul, 1998. "What's New about the New Economic Geography?," Oxford Review of Economic Policy, Oxford University Press, vol. 14(2), pages 7-17, Summer.
  4. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June. [Downloadable!] (restricted)
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