Complexity and Geographical Economics, 2015 Topics and Tools Dynamic Modeling and Econometrics in Economics and Finance Series, Vol. 19

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.

Introduction.- Part A. Economic Geography Modelling.- Part B. Institutions and Markets.- Part C. Industrial Interactions.