Spatial Modeling

Abstract

Spatial modeling is a systematic approach to understand the spatial configuration of economic activity from a local to a global scale. This chapter begins with an overview of empirical tests of spatial correlation, including testing of spatial randomness, join-count statistics, and Moran’s I. This leads to a discussion of spatial concentration measures and the usage of such tests and measures in the context of economic history. An overview of the development of spatial modeling, from von Thünen to Hotelling to the new economic geography demonstrates the abstract nature of modeling, its application in a wide range of settings, and the usefulness of economic history to validate theoretical approaches. The final section goes over a range of modeling components used in quantitative spatial economics and their relevance in economic history. The chapter concludes with an outlook to alternative modeling approaches, including spatial point processes and networks.