Computable Space-Time Equilibrium Models

Abstract

Spatial and spatio-temporal economic equilibrium analysis have a long and chequered history. From the work of von Thunen, in 1826, to the present day it has had three inter-related concerns—theoretical, computational and practical. Von Thunen set himself a theoretical problem that dealt with agricultural land use in an isolated state. The problem was posed in such a way that it required computation to produce a solution, and the method of analysis employed was regarded as thoroughly practical. ‘This method of analysis,’ wrote von Thunen, a practising farmer and sometimes politician, ‘has illuminated—and solved—so many problems in my life, and appears to me to be capable of such widespread application, that I regard it as the most important matter contained in all my work.’