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Towards an Integrated System of Models for National and Regional Development

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Spatial Analysis of Interacting Economies
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Abstract

In earlier chapters, we have been concerned predominantly with the estimation of intersectoral and interregional commodity flows from a limited database of industrial and multiregional information. Our main purpose has been to demonstrate a practical means by which the economic analyst can minimize his survey needs, which can be both extensive and expensive for intersectoral and interregional models.1 However, such estimates of flow coefficients can also be used to analyse feasible paths of economic development over space and time. To demonstrate this important role is the task of this final chapter.

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Notes for Chapter 7

  1. A point emphasized by Richardson (1973) and Rief1er (1973).

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  2. Functional specialization has been prompted by the ideas of certain hierarchical theorists, such as Koestler (1967), Mesarovic et al. (1970), Simon (1973) and Pattee (1973).

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  3. See Simon (1957).

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  4. A point emphasized by Richardson (1973).

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  5. For an introduction to the latter, see Tinbergen (1967) or Mennes, Tinbergen and Waardenburg (1969).

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  6. Models involving comparative statics are considered.

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  7. See Moses (1955; 1960).

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  8. For an extensive review of various multiregional models, see Rietveld (1981).

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  9. See Miernyk et al. (1970).

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  10. In reality, dij = qi bij. The assumption embodied in Equations (4.37) and (4.38) imposes more modest data requirements than Miernyk’s approach.

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  11. Al mon (1966) incorporated nonlinearities and changing technology into a closed version of Leontief’s dynamic models to complete a balanced growth rate for the American economy. Later forecasts appeared in Almon et al. (1975). Harris (1970) developed his interregional model from Almon’s early work.

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  12. See Harris (1970, p.174).

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  13. For the complete model specification, see Mathur (1972).

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  14. See Mathur (1972, p.220).

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  15. See Andersson (1975).

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  16. This balanced growth approach is discussed in detail in Andersson and Persson (1979, p.40).

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  17. See Andersson and Karlqvist (1979) or Andersson and Persson (1979).

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  18. See Funck and Rembold (1975).

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  19. See Sharpe and Batten (1976) or Karlqvist et al. (1978).

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  20. For the original iterative scheme (involving piecewise linear approximations) see Brotchie, Toakley and Sharpe (1971) or Brotchie, Dickey and Sharpe (1980). A discussion of the latest version, containing Eriksson’s (1980) entropy algorithm, appears in Sharpe, Batten and Anderson (1981).

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  21. See, for example, Sharpe and Batten (1976), Sharpe et al. (1977), Karlqvist et al. (1978), Sharpe, Ohlsson and Batten (1979), and Sharpe, Batten and Anderson (1981).

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  22. See Hafkamp and Nijkamp (1978; 1980).

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  23. See, for example, Simon (1957) or van Delft and Nijkamp (1977).

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  24. The MORSE model is outlined in Lundqvist (1980), and builds on earlier regional foundations laid by Snickars and Lundqvist (1978).

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  25. See, for example, Lesuis, Muller and Nijkamp (1980).

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  26. See, for example, Andersson and Karlqvist (1979), Andersson and Batten (1980), or Batten and Tremelling (1980).

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  27. See Kaniss (1978) or Isard and Liossatos (1979, Chapter 10 and Section 12.4).

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  28. See Isard (1975) or Isard and Liossatos (1979, pp.285-287).

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  29. The notion of balance between autonomous and constraining tendencies in a hierarchy has been emphasized by Koestler (1967). In a well-adjusted subsystem, the self-assertive tendency and its opposite, the integrative tendency, are more or less equally balanced. Koestler coined the term holon to describe hierarchical subsystems, and to stress that they exhibit the properties of independent wholes in certain domains, and those of dependent parts in others. For later presentations of similar ideas, see Mesarovic et al. (1970), Pattee (1973), and Simon (1973).

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  30. A point emphasized by Mesarovic, Macko and Takahara (1970).

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  31. See, for example, Tinbergen (1967) or Karlqvist et al. (1978).

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  32. See Simon (1973).

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  33. See Simon (1973, pp.110-117).

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  34. See Section 1.1.

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  35. See Koestler (1967, p.59).

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  36. In this exploratory exercise, all commodities are assumed homogeneous, and the one-to-one correspondence between the industries and commodities (implicit in Leontief’s original model) is retained.

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  37. Isard and Liossatos (1979, p.284n) illustrated this need using the example of an interregional linear programming model. On a world level, this model could be highly disaggregated, involving say 100 nations, each with 50 sectors; each sector could be an aggregate for a nation. The same type of model might also be adopted at the national level. Here there might be 20 regions with 100 sectors in each region, two or more sectors of this national model corresponding to a single sector of the international model; with national magnitudes of the international model being disaggregated by region in the interregional model. At the regional level, we might have a linear programming model involving 200 or more sectors for the region itself, two or more sectors of this model corresponding to a single sector in the national model. Furthermore, the distinction between skilled and unskilled labour in the household sector might be of critical importance in regional models, but irrelevant to national and international linear programming models.

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  38. The logic of Leontief’s open system is that by treating final demands exogeneously, they may be viewed as the objective function of the economic process. The generic model applicable to the theory of optimal control is also an open one, in which the behaviour of the system is determined by exogenous variables. Open systems may therefore be stabilized by allowing excess supply or demand conditions to develop, and then introducing a suitable proces of control to promote stabilization.

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  39. See, for example, Fisk and Brown (1975a, b).

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  40. Extensive work on an international trade model has been undertaken jointly by the International Institute of Applied Systems Analysis and the University of Maryland. The resulting INFORUM model is based on the assumption of slowly changing trade shares, which are regulated by movements in the prices of traded commodities in the producing countries on the world market. The production and price scenarios in each country are predicted using dynamic input-output theory. For further details of the INFORUM model, see Almon (1966; 1975) and Nyhus (1980).

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  41. The term “non-arbitrary” was coined by Brody (1970) and Johansen (1973).

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  42. See Johansen (1973, p.83).

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  43. Hierarchical theorists, such as Koestler (1967), Mesarovic, Macko and Takahara (1970), and Simon (1973), emphasize that multilevel organization combines independence of decision-making with a degree of and constraint on this autonomy, in such a way that overall stability results.

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  44. In earlier formulations, a set of capacity or cost constraints has sometimes been included, if the appropriate information is available. Since this type of constraint includes coefficients which strongly influence the distribution pattern between all regions, it will be excluded from our hierarchical formulation.

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  45. For further discussion of turnpike theorems and optimal growth paths at the regional level, see Fujita (1978).

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  46. A view taken by van Delft and Nijkamp (1977, p.8).

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  47. Based on Simon’s (1957) notion of bounded rationality.

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  48. For a general background to multi-objective decision methods, see Cochrane and Zeleny (1973), Wallenius (1975), and Cohon (1978). For the application of these methods to decision problems in spatial systems, see Nijkamp and Rietveld (1976), van Delft and Nijkamp (1977), Nijkamp (1977; 1978), Blair (1978) and Rietveld (1979).

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  49. See, for example, Nijkamp (1977) or Rietveld (1979).

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  50. An approach described by Hafkamp and Nijkamp (1978; 1980) and Lesuis, Muller and Nijkamp (1980).

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  51. Namely, one of (7.16) through (7.20).

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© 1983 Springer Science+Business Media New York

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Batten, D.F. (1983). Towards an Integrated System of Models for National and Regional Development. In: Spatial Analysis of Interacting Economies. Springer, Dordrecht. https://doi.org/10.1007/978-94-017-3040-2_7

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  • DOI: https://doi.org/10.1007/978-94-017-3040-2_7

  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-94-017-3042-6

  • Online ISBN: 978-94-017-3040-2

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