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A micro-simulation model of firms: Applications of concepts of the demography of the firm

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  • Leo van Wissen

    () (Netherlands Interdisciplinary Demographic Institute ; Faculty of Spatial Sciences, University of Groningen, RUG, P.O.Box 800, 9700 AV Groningen, The Netherlands)

Abstract

Recently, there is an increasing demand in spatial planning for models based on the demographic concepts of birth and death of firms. This article describes the structure of a spatial demographic simulation model of firms, and its application within The Netherlands. The model structure is essentially of the familiar demographic cohort component type, where an initial cohort of firms ages in a number of discrete steps, and where in each step additions and subtractions to and from the population are modelled using birth, death and migration components. Apart from the central processes of birth, death and migration, the type of economic activity and firm size are highly important for understanding firm behaviour over time. The article describes the transition functions for each of the demographic components and for firm growth. In addition, some empirical results are presented of a number of model simulations in The Netherlands. The results were partly validated using observed economic demographic data. It is concluded that a substantial amount of work remains to be done in this new field. The model presented here has direct implications for the research agenda of the study of the demography of the firm.

Suggested Citation

  • Leo van Wissen, 2000. "A micro-simulation model of firms: Applications of concepts of the demography of the firm," Papers in Regional Science, Springer;Regional Science Association International, vol. 79(2), pages 111-134.
  • Handle: RePEc:spr:presci:v:79:y:2000:i:2:p:111-134
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    Citations

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    Cited by:

    1. Tilmann Rave & Ursula Triebswetter, 2006. "Ökonomische Auswirkungen umweltpolitischer Regulierungen : eine Machbarkeitsstudie vor dem Hintergrund der Anforderungen der Richtlinie 96/61/EG über die integrierte Vermeidung und Verminderung von Um," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 30, October.
    2. Kristin Kronenberg, 2013. "Firm relocations in the Netherlands: Why do firms move, and where do they go?," Papers in Regional Science, Wiley Blackwell, vol. 92(4), pages 691-713, November.
    3. McArthur, David & Thorsen, Inge & Ubøe, Jan, 2008. "An agent-based computational approach to explaining persistent spatial unemployment disparities," Discussion Papers 2008/17, Norwegian School of Economics, Department of Business and Management Science.
    4. Kristin Kronenberg, 2011. "Business relocations in the Netherlands: Why do firms move, and where do they go?," ERSA conference papers ersa11p1450, European Regional Science Association.
    5. Buczkowska, Sabina & de Lapparent, Matthieu, 2014. "Location choices of newly created establishments: Spatial patterns at the aggregate level," Regional Science and Urban Economics, Elsevier, vol. 48(C), pages 68-81.
    6. Dick Ettema & Aldrik Bakema & Harry Timmermans, 2005. "PUMA - a multi-agent model of urban systems," ERSA conference papers ersa05p281, European Regional Science Association.
    7. Massón-Guerra, José Luis & Vendrell-Ferrero, Ferran, 2008. "Entrepreneurship Spillover and the determinants of Key Sectors for new business creation: An inter-sectorial approach," MPRA Paper 10748, University Library of Munich, Germany.
    8. Raspe, Otto & van Oort, Frank, 2008. "Firm Growth and Localized Knowledge Externalities," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 38(2).
    9. Jung Hun Yang & Dick Ettema & Koen Frenken & Frank van Oort & Evert-Jan Visser, 2011. "A geosimulation model of economic activity for supporting spatial planning and economic policy," ERSA conference papers ersa10p1016, European Regional Science Association.
    10. Cathal O'Donoghue & Karyn Morrissey & John Lennon, 2014. "Spatial Microsimulation Modelling: a Review of Applications and Methodological Choices," International Journal of Microsimulation, International Microsimulation Association, vol. 7(1), pages 26-75.
    11. Jesús F. Lampón & Pablo Cabanelas-Lorenzo & Santiago Lago-Peñas, 2013. "Why firms relocate their production overseas? The answer lies inside: corporate, logistic and technological determinants," Working Papers 2013/3, Institut d'Economia de Barcelona (IEB).
    12. Dejardin, Marcus, 2002. "Cross-sectoral effects of retailing firm demographies," ERSA conference papers ersa02p292, European Regional Science Association.
    13. Jason P. Brown & Raymond J.G.M. Florax & Kevin T. McNamara, 2008. "Evolution Of Investment Flows In U.S. Manufacturing:A Spatial Panel Approach," Working Papers 08-06, Purdue University, College of Agriculture, Department of Agricultural Economics.
    14. Atzema, Oedzge & van Oort, Frank, 2002. "Agglomeration economies and the location of new information and communication technology (ICT) firms in the Netherlands," ERSA conference papers ersa02p190, European Regional Science Association.
    15. Enno Masurel & Peter Nijkamp, 2002. "Motivations and Performance Conditions for Ethnic Entrepreneurship," Growth and Change, Wiley Blackwell, vol. 33(2), pages 238-260.
    16. Kiarash Motamedi & Nathalie Picard & André de Palma, 2013. "Employment and Business Evolution and Location Choice in Paris Area Firmographics approach," THEMA Working Papers 2013-28, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    17. Cao Nguyen & Kazushi Sano & Tu Tran & Tan Doan, 2013. "Firm relocation patterns incorporating spatial interactions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(3), pages 685-703, June.
    18. Michiel de Bok, 2004. "Explaining the location decision of moving firms using their mobility profile and the accessibility of locations," ERSA conference papers ersa04p338, European Regional Science Association.
    19. Michiel De Bok & Michiel Bliemer, 2005. "Using firm demographic microsimulation to evaluate land use and transport scenario evaluation - model calibration," ERSA conference papers ersa05p664, European Regional Science Association.

    More about this item

    Keywords

    Demography of the firm; regional economic growth; micro-simulation; firm formation; firm dissolution;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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