Mechanics of the Urban Economic Base: Causes and Effects of Change in the Base Ratios and the Ratio Elements (I)

Abstract

the present state of knowledge the view of the urban economy presented by the theory is essentially a static one. Base ratios which quantify the principal elements of the urban economy, according to the theory, tend to show the state of a community at one moment of time, a still life as it were, of a local economy. While understanding of urban structure is improved by this approach little is contributed, save by rather tenuous assumptions in most cases, to an understanding of the dynamics of urban economies. This deficiency is highly significant in the fact that, as is generally recognized, the modern urban community is in a constant state of flux economically and socially. Therefore, if base theory is to make a meaningful contribution to the planning process of predicting the trend of a local economy and of ultimately controlling it a more complete exploration and testing of the assumptions relating to change in the base ratios of the urban economy must be conducted.