12 Selected models of spatial macroeconomics

12.1 Entropy decomposition

Models of spatial macroeconomics base on certain regionalization of an economic space. In other words, an economic space must be described as a set of regions with a group of attributes (indicators). Sizes of regions and information on the values of corresponding indicators appear interconnected; as a rule, the smaller is a region, the less accessible is information on its indicators. Therefore, researchers face the relevant problem of “spreading” the information on state indicators of large regions to their districts (using some indirect information on the latter).

Consider an economic space consisting of I regions, each containing Mi districts (see Figure 12.1). Imagine ...

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