Modelling Migration and Economic Agglomeration with Active Brownian Particles

Frank Schweitzer

Advances in Complex Systems (ACS), 1998, vol. 01, issue 01, 11-37

Abstract: We propose a stochastic dynamic model of migration and economic aggregation in a system of employed (immobile) and unemployed (mobile) agents which respond to local wage gradients. Dependent on the local economic situation, described by a production function which includes cooperative effects, employed agents can become unemployed and vice versa. The spatio-temporal distribution of employed and unemployed agents is investigated both analytically and by means of stochastic computer simulations. We find the establishment of distinct economic centers out of a random initial distribution. The evolution of these centers occurs in two different stages: (i) small economic centers are formed based on the positive feedback of mutual stimulation/cooperation among the agents, (ii) some of the small centers grow at the expense of others, which finally leads to the concentration of the labor force in different extended economic regions. This crossover to large-scale production is accompanied by an increase in the unemployment rate. We observe a stable coexistence between these regions, although they exist in an internal quasistationary non-equilibrium state and still follow a stochastic eigendynamics.

Keywords: Agents; aggregation; economic geography; stochastic dynamics (search for similar items in EconPapers)
Date: 1998
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Citations: View citations in EconPapers (7)

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DOI: 10.1142/S021952599800003X

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