City formation with complex landscapes

Abstract

SummaryUsing simulation methods I explore some of the properties of the new economic geography model using a complex landscape. I introduce landscape complexity by allowing the existence of limited pathways that can be traversed at a lower cost than most other paths. I also introduce a river that may be crossed at limited points and may be used to transport goods. I find that adding complexity substantially alters how many cities form and where they form. Compared with a simple landscape, complex landscapes produce a distribution of city sizes that more closely resemble the actual distribution of city sizes.