Emergence and Evolution of Heterogeneous Spatial Patterns

We live in a quite heterogeneous space. There are cities and rural areas, and population density varies a lot across space. People migrate and commute to the places of their work. The goal of this article is to clarify the mechanism of commuting as an equilibrium in heterogeneous space with different technologies. It is well known that agricultural production requires substantial amount of land per unit of labour, while most industrial production and services require much lower land input. We assume that all industrial production and service sector is located in urban areas, while all agriculture is in rural area. Historically, the share of labour in agriculture was declining due to more rapid growth of productivity there in comparison to service sector. At the same time, people change the location of their residence much slower. That is why at some point in time we face the situation, when rural area has excessive labour (not enough work for all in agriculture), while urban areas create an increasing number of jobs. A relatively simple mathematical model is proposed to explain the emergence of spatial pattern with heterogeneous density and phase transition between urban and rural areas. There are three types of agents: workers who live in a city, farmers who live in a rural area and workers-commuters from rural area to a city. In an equilibrium they are indifferent between occupation and residence. An indifference across locations for a priori identical agents implies the shape of land rent. If some parameters of the model change, they imply the change of the whole spatial pattern. In particular, split of rural residents into commuters and farmers depends on road infrastructure development through transport cost. Two types of shocks (decline in commuting transport cost by construction of fast roads and the relative decline in agricultural price) can perturb agricultural zone. Some former farmers start commuting to city while keeping residence in rural area. This is how a functional area of a city with integrated labour market emerges.

Potential and Spatial Structure of Population

The goal of this work is to suggest a mechanism explaining different spatial patterns of residential locations. The basic idea is counterbalance of centripetal and centrifugal forces. This paper complements the previous author's works in this area. This article addresses the following questions: a) agglomeration potential, b) optimal city size, c) equilibrium agricultural density, d) influence of agglomeration on land rent. Both relative location and size distribution of cities and residential patterns in agricultural areas represent interesting objects of study. There exist two main forces, centripetal (agglomeration) and centrifugal (congestion) that shape urban areas. The origin of agglomeration forces is in scale economies, while congestion forces represent a cumulative negative externality from such agglomeration. Following the stylized facts about different production technologies, it is assumed that agricultural technology creates dispersion force (through intensive land use), while industrial technology creates agglomeration force. It is possible to find the optimal city size assuming some scale economies in production counterbalanced by commuting costs. Location heterogeneity is balanced across residents via location rent to bring identical utility. There might be two possibilities: finite optimal size (for low scale economies) and infinitely large city (for high scale economies). The rural community of farmers is also considered. Here the average distance to neighbor (as a proxy to market access) is balanced with the benefits from land ownership. The optimal rural population density is the point maximizing this potential. Finally, the spatial equilibrium is constructed. It consists of discrete cities of optimal size attracting certain fraction of the population and the continuous farmland between them. The concept of potential for agro-industrial cluster is also introduced. It is assumed that rural resident has an access to scale economies in production of a city via commuting, and also has land slot for agricultural activity. There exists equilibrium land rent giving agents identical utility.

Water - Spatial Network Pricing

The paper addresses an important issue of pricing mechanisms is spatially distributed systems with losses, with an application to water supply system. When losses from delivery are high, the asymmetry of spatial location of consumers plays an important role, which is captured by the model. The goal is to compare the efficiency from alternative market structures for water supply. The model can be applied for channels aimed on water redistribution. In particular, the model can be relevant for analysing different market structures, equilibrium water pricing and efficiency for the planned channels. Potential application can be planned channel between river Ebro (Spain) and communities Valencia and Murcia. While this paper is purely theoretical, it addresses the issues that are still little understood at administrative level. Water market as described is a necessity, but it will not emerge spontaneously and it requires appropriate legislative preparation. Mathematical model is designed in terms of densities and flows of corresponding economic variables.

Considerations on the Return Trajectories from the Moon to the Earth

Moon to earth return trajectory analysi

A Land Far Away

What goods to export and where to sell them? Our research was pursuing these two major goals. The first one is related to detecting countries where Austria has good perspectives for boosting its export. The basic idea was to use macroeconomic data set detecting the significant variables. We found that besides the GDP of importer and distance, there are more important variables like being landlocked, language, inflation, and so forth. We found recent GDP growth rate to be non-significant in more than just the very basic models. Taking all explanatory variables into account we could calculate the country-effects, telling us how Austrian exporters are under or over-represented within each country. It is argued that exporters could put additional efforts into quickly growing countries where Austria is still under-represented. The second goal was a more detailed view on the role of transport costs. Gravity model was shown to be correct and robust (even for a class of functions of distance). The detailed accounting for transport costs requires consideration of different transport modes and ratios of value to weight. Distance suppresses trade of cheap goods most, suggesting that Austria has no disadvantage in export of high-tech goods (like pharmaceutics and complex machines) over long distances. In particular, pharmaceutical sector has growing potential and trade with Russia is one of its perspectives.International Trade, Gravity Model, Transport Cost, Growth, Advantage

Wealth and cohort size: stock market boom or bust ahead?

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