A Spatial Equilibrium Model for Region Size, Urbanization Ratio, and Rural Structure

1997 ◽  
Vol 29 (5) ◽  
pp. 929-941 ◽  
Author(s):  
F Wang ◽  
J-M Guldmann

Earlier economic models of city size have either focused on urban agglomeration effects while ignoring the spatial structure of the rural hinterland, or made unrealistic assumptions (for example, uniform rural population distribution) so as to simplify the problem. Following the classic von Thünen framework, we present a two-sector spatial equilibrium model of a city located at the center of an agricultural hinterland. The city produces industrial goods, and the rural area produces agricultural goods. Both goods are consumed both by urban and by rural residents. Market equilibrium for these goods determines: (1) the spatial size of the region, (2) the urbanization ratio (urban to total population) and the population size of the city, and (3) the rural spatial structure (wage, population distribution, land rent, and agricultural yield). Given various sets of exogenous parameters pertaining to the industrial, agricultural, and transportation production functions and to population preferences, the model is solved numerically, and response functions are estimated and analyzed.

1979 ◽  
Vol 11 (1) ◽  
pp. 23-34 ◽  
Author(s):  
G I Thrall

A spatial-equilibrium model of a local public economy is developed in four settings. Each setting is distinguished by two factors: whether the city is ‘open’ or ‘closed’, and the method used to determine the urban fringe. The four settings are contrasted by use of a numerical illustration.


2021 ◽  
pp. 1-46
Author(s):  
Jingting Fan ◽  
Yi Lu ◽  
Wenlan Luo

Abstract A key input to quantitative evaluations of transport infrastructure projects is their impact on transport costs. We propose a new method of estimating this impact relying on widely accessible customs data: by using the route choice of exporters. We combine our method with a spatial equilibrium model to study the effects of the massive expressway construction in China between 1999 and 2010. We find transport costs are 20% lower on expressways than on regular roads. The expressways construction increases aggregate exports by 10% and domestic trade by 14%. It generates 5.1% welfare gains, implying a 150% net return to investment.


2017 ◽  
Vol 46 (5) ◽  
pp. 805-825 ◽  
Author(s):  
Li Wan ◽  
Ying Jin

Robust calibration and validation of applied urban models are prerequisites for their successful, policy-cogent use. This is particularly important today when expert assessment is questioned and closely scrutinized. This paper proposes a new model calibration-validation strategy based on a spatial equilibrium model that incorporates multiple time horizons, such that the predictive capabilities of the model can be empirically tested. The model is implemented for the Greater Beijing city region and the model validation strategy is demonstrated over the Census years 2000 to 2010. Through forward/backward forecasting, the model validation helps to verify the stability of the model parameters as well as the predictive capabilities of the recursive equilibrium framework. The proposed modelling strategy sets a new standard for verifying and validating recursive equilibrium models. We also consider the wider implications of the approach.


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