Predicting and explaining changes in urban structure using urban simulation models

Abstract

This paper explains urban general equilibrium models based on microeconomics’ consumption and production theories and derives the functions of urban economics from the theoretical models. Those functions can be coded into software programs with programing languages including JAVA. Two urban simulation models have been developed by the authors and posted on their websites, and can be used by anyone world-wide. Although current textbooks provide a few figures to help students understand these models, the simulation programs allow students not only to observe these figures but also to determine how the figures change when key parameters are altered. This paper also illustrates how the simulation models can be used to explain suburbanization and the effect of building a new city on the economy of an adjacent city.