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Complexity and Geographical Economics: Topics and Tools

Complexity and Geographical Economics: Topics and Tools

Paperback

Series: Dynamic Modeling and Econometrics in Economics and Finance, Book 19

Business GeneralGeneral MathematicsGeography

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ISBN10: 3319379836
ISBN13: 9783319379838
Publisher: Springer
Published: Oct 6 2016
Pages: 377
Weight: 1.21
Height: 0.81 Width: 6.10 Depth: 9.25
Language: English
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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