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Computational modeling of city formation

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Listed:
  • 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

Suggested Citation

  • Kurt DeMaagd & Scott Moore, 2007. "Computational modeling of city formation," Computational Economics, Springer;Society for Computational Economics, vol. 30(1), pages 41-56, August.
    • Handle: RePEc:kap:compec:v:30:y:2007:i:1:p:41-56
    DOI: 10.1007/s10614-007-9085-3
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    References listed on IDEAS

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    1. Krugman, Paul, 1998. "What's New about the New Economic Geography?," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 14(2), pages 7-17, Summer.
    2. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, December.
    3. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    4. 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.
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