Taking geographical economics out of equilibrium: implications for theory and policy

Authored by Christopher S. Fowler

Date Published: 2007-05

DOI: 10.1093/jeg/lbm006

Sponsors: No sponsors listed

Platforms: Repast

Model Documentation: Other Narrative Mathematical description

Model Code URLs: Model code not found

Abstract

This article reports on research that translated a basic model from geographical economics into a dynamic, agent-based environment with the goal of tracing the path it takes towards the equilibrium/a posited by the analytic model. The research finds that the relationships in the analytic model do not make sense in a dynamic spacetime economy. Specifically, it is impossible for firms to make decisions about production levels without knowing exactly what every other firm will do and where labor will be available. This finding suggests some new directions for the development of dynamic spatial-economic models that can operate outside of equilibrium.

Tags

Agent-based modeling Equilibrium geographical economics