Forecasting and simulation of the impact of public policies on industrial districts using an agent-based model
The research in the topic of industrial districts has been focused on the identification of which industries are forming industrial districts and on the causes behind the development of the clusters. As well as there are historical and efficiency reasons that are behind the current configuration of the industrial districts, up to now it seemed not crucial to clarify how different public policies affect the structure and relationships between the enterprises that are included in the clusters. With the use of an agent-based model we can analyze and forecast how each enterprise will change in stochastic terms. Moreover, it make feasible to predict changes in the size and structure of clusters and possible spillovers. ABMs are based on the assumption in which the economy fluctuates according to the behaviour of agents, which react in a proactive way. This difference makes ABMs an accurate tool for forecasting during crisis taking into account both changes in expectations and in policy instruments. In conventional models interactions are indirect, but agent-based modeling (ABM) allow simulating a plenty of shifts in agentsâ€™ behaviour through imitation or in their strategies according to the behaviour of the majority. These capabilities applied to firms permit to modify many not explicit assumptions incorporated into the majority of conventional models with the objective of predicting changes in the size and structure of industrial districts. Moreover, ABM allow making simulations changing parameters included in one or several public policies and obtaining the effects of these policies on clusters, accordingly to their own characteristics. The starting point is the building, trough statistical matching techniques making use of microdata sources, of a general database that replicates the attributes and location of all individuals and companies located in a specific spatial context. Then, behaviours are established for both companies and individuals who are interacting according to their preferences and endowments. In addition to these agents we include a raster of locations, built through downscaling techniques and display the current situation of different policies, in order to measure properly the changes introduced for making simulations. Finally, it would be possible to identify with high accuracy each cluster and its different characteristics. This permits to forecast and simulate the impact of changes in public policies on clusters structure and performance in stochastic terms thus enabling a better assessment of policy outcomes taking into account the robustness of the effect, related to the stochastic nature of the aggregated results. That is, ABM will allow us a better assessment of both policy outcomes and the certainty about the results. JEL: L52, R12, R58 Key words: Agent-based model, policy evaluation, industrial districts
|Date of creation:||Oct 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.ersa.org
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Albino, Vito & Carbonara, Nunzia & Giannoccaro, Ilaria, 2007. "Supply chain cooperation in industrial districts: A simulation analysis," European Journal of Operational Research, Elsevier, vol. 177(1), pages 261-280, February.
- Flaminio Squazzoni & Riccardo Boero, 2002. "Economic Performance, Inter-Firm Relations and Local Institutional Engineering in a Computational Prototype of Industrial Districts," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 5(1), pages 1.
- Ron Boschma, 2005. "Proximity and Innovation: A Critical Assessment," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 61-74.
- Albino, Vito & Carbonara, Nunzia & Giannoccaro, Ilaria, 2006. "Innovation in industrial districts: An agent-based simulation model," International Journal of Production Economics, Elsevier, vol. 104(1), pages 30-45, November.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa12p553. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier)
If references are entirely missing, you can add them using this form.