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Spatial Analysis: Development of Descriptive and Normative Methods with Applications to Economic-Ecological Modelling

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  • William Brock

    ()
    (University of Wisconsin, Department of Economics, USA)

  • Anastasios Xepapadeas

    ()
    (Department of Economics, University of Crete, Greece)

Abstract

This paper adapts Turing analysis and applies it to dynamic bioeconomic problems where the inter- action of coupled economic and ecological dynamics over space endogenously creates (or destroys) spatial heterogeneity. It also extends Turing analysis to standard recursive optimal control frame- works in economic analysis and applies it to dynamic bioeconomic problems where the interaction of coupled economic and ecological dynamics under optimal control over space creates a challenge to analytical tractability. We show how an appropriate formulation of the problem reduces analysis to a tractable extension of linearization methods applied to the spatial analog of the well known costate/state dynamics. We illustrate the usefulness of our methods on bioeconomic applications, but the methods have more general economic applications where spatial considerations are important. We believe that the extension of Turing analysis and the theory associated with dispersion relationship to recursive in…nite horizon optimal control settings is new.

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File URL: http://economics.soc.uoc.gr/wpa/docs/SpatialMethodsinEcologicalApplicationsSubmAER20Oct04.pdf
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Bibliographic Info

Paper provided by University of Crete, Department of Economics in its series Working Papers with number 0407.

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Length: 43 pages
Date of creation: 20 Oct 2004
Date of revision:
Handle: RePEc:crt:wpaper:0407

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Related research

Keywords: Spatial analysis; Pattern formation; Turing mechanism; Optimal control; bioeconomic problems;

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  1. Sanchirico, James N. & Wilen, James E., 1999. "Bioeconomics of Spatial Exploitation in a Patchy Environment," Journal of Environmental Economics and Management, Elsevier, vol. 37(2), pages 129-150, March.
  2. Dixit, Avinash K & Stiglitz, Joseph E, 1975. "Monopolistic Competition and Optimum Product Diversity," The Warwick Economics Research Paper Series (TWERPS) 64, University of Warwick, Department of Economics.
  3. Sanchirico, James N., 2005. "Additivity properties in metapopulation models: implications for the assessment of marine reserves," Journal of Environmental Economics and Management, Elsevier, vol. 49(1), pages 1-25, January.
  4. Paul Krugman, 1998. "Space: The Final Frontier," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 161-174, Spring.
  5. Brock,W. & Xepapadeas,A., 2000. "Optimal ecosystem management when species compete for limiting resources," Working papers 27, Wisconsin Madison - Social Systems.
  6. Sanchirico, James N. & Wilen, James E., 2001. "A Bioeconomic Model of Marine Reserve Creation," Journal of Environmental Economics and Management, Elsevier, vol. 42(3), pages 257-276, November.
  7. Krugman, Paul, 1993. "On the number and location of cities," European Economic Review, Elsevier, vol. 37(2-3), pages 293-298, April.
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