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A Framework for Modelling Economic Regional Location Processes Under Uncertainty

Author

Listed:
  • Roy Cerqueti

    (Sapienza University of Rome
    London South Bank University)

  • Eleonora Cutrini

    (University of Macerata)

Abstract

This paper deals with the theoretical analysis of the spatial concentration and localization of firms and employees over a set of regions. In particular, it provides a simple site-selection theoretical model to describe the probabilistic framework of the location patterns. The adopted quantitative tool is the stochastic theory of urns. The model moves from the empirical evidence of the deviation of the spatial location of companies from the uniform distribution and of employees from the distribution of firms. Factors leading to such deviations are taken into consideration. Specifically, we formalize a decision problem grounded on the economic attributes of the regions and also on the distribution of the existing firms and employees in the territory. To our purpose, the site-selection model is presented as a stepwise process.

Suggested Citation

  • Roy Cerqueti & Eleonora Cutrini, 2021. "A Framework for Modelling Economic Regional Location Processes Under Uncertainty," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 19(4), pages 703-725, December.
    • Handle: RePEc:spr:jqecon:v:19:y:2021:i:4:d:10.1007_s40953-021-00248-w
    DOI: 10.1007/s40953-021-00248-w
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    References listed on IDEAS

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    More about this item

    Keywords

    Spatial concentration of firms; Localization process; Urn model;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics

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