TY - JOUR
T1 - Resilience in a noisy urban system
AU - Broitman, Dani
AU - Czamanski, Daniel
N1 - Publisher Copyright:
© 2023 The Authors. Regional Science Policy & Practice published by John Wiley & Sons Ltd on behalf of Regional Science Association International.
PY - 2023
Y1 - 2023
N2 - The ability of cities to recuperate from disturbances and return to their evolutionary pathways depends, first and foremost, on the type of damage that the shock created. But in addition, it depends on how information is transmitted in the urban system and on how noise filters distort the information that reaches economic agents. So long as the transmission of information does not disturb the functioning of the urban economy, shocks do not prevent the return to the long-run evolutionary paths. We study the migration decisions of agents, following information that they receive using an agent-based model of endogenous growth in a closed urban system. These decisions affect the spread of innovative ideas, of innovations, and the birth rate of new firms. The aggregate reactions of agents to shocks can affect the resilience of the entire urban system and of individual cities, sometimes allowing a return to the same domain, and sometimes driving the system and parts of its constituents to another regime of behavior. We analyze the repercussion of shocks on the resilience of urban systems by considering how noise in the transmission of information affects the decisions of agents at various times and locations. The conclusions are that, while information noise is a burden that constantly and systematically hinders the economic potential of the system, financial shocks reshuffle resources causing a fundamental change in the urban system trajectories.
AB - The ability of cities to recuperate from disturbances and return to their evolutionary pathways depends, first and foremost, on the type of damage that the shock created. But in addition, it depends on how information is transmitted in the urban system and on how noise filters distort the information that reaches economic agents. So long as the transmission of information does not disturb the functioning of the urban economy, shocks do not prevent the return to the long-run evolutionary paths. We study the migration decisions of agents, following information that they receive using an agent-based model of endogenous growth in a closed urban system. These decisions affect the spread of innovative ideas, of innovations, and the birth rate of new firms. The aggregate reactions of agents to shocks can affect the resilience of the entire urban system and of individual cities, sometimes allowing a return to the same domain, and sometimes driving the system and parts of its constituents to another regime of behavior. We analyze the repercussion of shocks on the resilience of urban systems by considering how noise in the transmission of information affects the decisions of agents at various times and locations. The conclusions are that, while information noise is a burden that constantly and systematically hinders the economic potential of the system, financial shocks reshuffle resources causing a fundamental change in the urban system trajectories.
KW - urban dynamics
KW - urban economics
KW - urban models
UR - http://www.scopus.com/inward/record.url?scp=85165874910&partnerID=8YFLogxK
U2 - 10.1111/rsp3.12704
DO - 10.1111/rsp3.12704
M3 - ???researchoutput.researchoutputtypes.contributiontojournal.article???
AN - SCOPUS:85165874910
JO - Regional Science Policy and Practice
JF - Regional Science Policy and Practice
ER -