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Journal of Economic Geography Advance Access published online on March 21, 2007
Journal of Economic Geography, doi:10.1093/jeg/lbm006
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© The Author (2007). Published by Oxford University Press. All rights reserved. For Permissions, please email: journals.permissions@oxfordjournals.org

Taking geographical economics out of equilibrium: implications for theory and policy

Christopher S. Fowler*

* University of Washington, Department of Geography, Seattle, WA 98195-3550, USA. email < csfowler{at}u.washington.edu>

This article reports on research that translated a basic model from geographical economics into a dynamic, agent-based environment with the goal of tracing the path it takes towards the equilibrium/a posited by the analytic model. The research finds that the relationships in the analytic model do not make sense in a dynamic space–time economy. Specifically, it is impossible for firms to make decisions about production levels without knowing exactly what every other firm will do and where labor will be available. This finding suggests some new directions for the development of dynamic spatial-economic models that can operate outside of equilibrium.

Keywords: agent-based modeling, geographical economics, equilibrium,
JEL classifications: A12, C63, R12
Date submitted: 6 June 2006     Date accepted: 12 February 2007


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