Complexity and Geographical Economics

The uneven geographical distribution of economic activities is a huge challenge worldwide and also for the European Union. In Krugmanℓ́ℓs 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 eyeℓ́ℓs 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 firmsℓ́ℓ decision on location and innovation. Such multilevel models exhibit complex dynamic patterns ℓ́ℓ path dependence, cumulative causation, hysteresis ℓ́ℓ on a network structure; and specific analytic tools are necessary for studying strategic interaction, heterogeneity and nonlinearities.

Year

2015

Language

English

Publisher

Springer

Editions

5

Pages

377

ISBN

9783319128047

Data source: Wikidata