Complexity and Geographical Economics Topics and Tools /

The uneven geographical distribution of economic activities is a huge challenge worldwide and also for the European Union. In Krugman’s New Economic Geography economic systems have a simple spatial structure. This book shows that more sophisticated models should visualise the EU as an evolving trade...

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Corporate Author: SpringerLink (Online service)
Other Authors: Commendatore, Pasquale. (Editor, http://id.loc.gov/vocabulary/relators/edt), Kayam, Saime. (Editor, http://id.loc.gov/vocabulary/relators/edt), Kubin, Ingrid. (Editor, http://id.loc.gov/vocabulary/relators/edt)
Language:English
Published: Cham : Springer International Publishing : Imprint: Springer, 2015.
Edition:1st ed. 2015.
Series:Dynamic Modeling and Econometrics in Economics and Finance, 19
Subjects:
Online Access:https://doi.org/10.1007/978-3-319-12805-4
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520 |a The uneven geographical distribution of economic activities is a huge challenge worldwide and also for the European Union. In Krugman’s New Economic Geography economic systems have a simple spatial structure. This book shows that more sophisticated models should visualise the EU as an evolving trade network with a specific topology and different aggregation levels. At the highest level, economic geography models give a bird eye’s view of spatial dynamics. At a medium level, institutions shape the economy and the structure of (financial and labour) markets. At the lowest level, individual decisions interact with the economic, social and institutional environment; the focus is on firms’ decision on location and innovation. Such multilevel models exhibit complex dynamic patterns – path dependence, cumulative causation, hysteresis – on a network structure; and specific analytic tools are necessary for studying strategic interaction, heterogeneity and nonlinearities. 
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