A Framework for Modelling Economic Regional Location Processes Under Uncertainty

Abstract

AbstractThis paper deals with the theoretical analysis of the spatial concentration and localization of firms and employees over a set of regions. In particular, it provides a simple site-selection theoretical model to describe the probabilistic framework of the location patterns. The adopted quantitative tool is the stochastic theory of urns. The model moves from the empirical evidence of the deviation of the spatial location of companies from the uniform distribution and of employees from the distribution of firms. Factors leading to such deviations are taken into consideration. Specifically, we formalize a decision problem grounded on the economic attributes of the regions and also on the distribution of the existing firms and employees in the territory. To our purpose, the site-selection model is presented as a stepwise process.