HANDBOOK OF REGIONAL SCIENCE.

Contents
About the Editors
About the Section Editors
Contributors
Regional Science in Perspective: Editorial Introduction
	Aims and Scope
	Structure of the Handbook
		History of Regional Science
		Location and Interaction
		Regional Housing and Labor Markets
		Regional Economic Growth
		Innovation and Regional Economic Development
		Regional Policy
		New Economic Geography, Evolutionary Economic Geography, and Regional Dynamics
		Environmental and Natural Resources
		Spatial Analysis and Geocomputation
		Spatial Statistics
		Spatial Econometrics
	A Content Cloud Analysis of the Handbook
	Closing Remarks
Section I: History of Regional Science
	Regional Science Methods in Planning
		1 Introduction
			1.1 The Origins of Regional Science
		2 Bringing Planners on Board in the Early Days
			2.1 Before Regional Science
			2.2 Helping Planners to Benefit from Regional Science
			2.3 A Textbook for Regional Science Methods
		3 Regional Science and Penn
			3.1 Isard´s Planning Ally: Robert Mitchell
		4 Testing and Demonstrating Regional Models
			4.1 The Philadelphia Regional Input-Output Study
			4.2 The Penn-Jersey Transportation Study
			4.3 Czamanski´s Regional Studies in Nova Scotia
		5 Regional Science Methods and British Plan-Making
			5.1 The Slow Take-Up of Social Science Among Planners
			5.2 Isard´s Efforts to Establish a British Section
			5.3 Brian McLoughlin´s Systems Approach to Planning
			5.4 Alan Wilson´s Role in Advancing Planning Analysis
			5.5 Pragmatic Practitioners
			5.6 Methods of Regional Analysis Revised: A Missed Opportunity?
		6 Conclusions
		7 Cross-References
		References
	A Reconnaissance Through the History of Shift-Share Analysis
		1 Introduction
		2 Shift-Share Early Developments
		3 Shift-Share Analysis as a Forecasting Tool
		4 Finding Meaning in the Drift Component
		5 Limits of Time and Dynamic Shift-Share Analysis
		6 The Nation Need Not Be the Referent Area
		7 The Problem of Productivity Differentials
		8 Digging Deeper into Industry Shifts
		9 Beyond Traditional Shift-Share Analysis: Structural Decomposition Analysis
		10 Shift-Share in a Regression Framework
		11 Application to Other Topics
		12 Conclusions
		13 Cross-References
		References
	City-Size Distribution: The Evolution of Theory, Evidence, and Policy in Regional Science
		1 Introduction
		2 Foundations: 1935-1955
			2.1 Background
			2.2 The Main Contributions
				2.2.1 The Rank-Size Distribution
				2.2.2 Random Growth
				2.2.3 Central Place Theory
		3 New Perspectives: 1955-1975
			3.1 Background
			3.2 The Main Contributions
				3.2.1 Primacy
				3.2.2 Location Theory
				3.2.3 Hierarchy Models
				3.2.4 Empirical Regularities
				3.2.5 Early Simulations
		4 Mature Perspectives: 1975-1995
			4.1 Background
			4.2 The Main Contributions
				4.2.1 Deeper Empirical Investigations
				4.2.2 Better Hierarchy Models
				4.2.3 More Advanced Simulations
		5 Summary and Conclusion
		6 Cross-References
		References
	Classical Contributions: Von Thünen and Weber
		1 Introduction
		2 The Location of Activities in Space: Land Rent Formation
			2.1 Accessibility and Transportation Costs
			2.2 The Location of Agricultural Activities: The von Thünen Model
			2.3 The Location of Activities in a City: A Partial Spatial Equilibrium Approach
			2.4 The Location of Activities in a City: A General Spatial Equilibrium Approach
			2.5 Critical Remarks
		3 The Location of Industrial Activities in Space: Weber´s Model
			3.1 Transportation Costs and Agglomeration Economies
			3.2 Weber´s Model
			3.3 Critical Remarks of the Model
		4 Conclusions
		References
	Market Areas and Competing Firms: History in Perspective
		1 Introduction
		2 Theoretical Background
		3 Theoretical Modeling of Location Choices
		4 Basic Modeling Principles and Assumptions
		5 Experimenting with the Hotelling Model
		6 Analysis of the Simulation Results
		7 Conclusions
		References
	Spatial Interaction Models: A Broad Historical Perspective
		1 Introduction and Notation
		2 Early Ideas
		3 Social Physics
		4 Maximum Entropy
		5 Maximum Utility
		6 Random Choice
		7 Trade
			7.1 The Specific Goods Model
			7.2 The Monopolistic Competition Model
			7.3 The Ricardian Model
		8 Conclusion
		9 Cross-References
		References
	Regional Science Methods in Business
		1 Introduction
		2 Macroscale Models
		3 Mesoscale Models
		4 Microscale Models
		5 Conclusions
		6 Cross-References
		References
	Worlds Lost and Found: Regional Science Contributions in Support of Collective Decision-Making for Collective Action
		1 Introduction
		2 Ontologies Adequate to the World in Which We Plan
			2.1 Ontologizing from Within Planning
		3 Viewing Actors from the Perspective of Behavioral Economics and Complexity Theory
			3.1 Endogenizing Social Structure
				3.1.1 Assumptions
				3.1.2 Additional Notation
				3.1.3 Model Development
				3.1.4 A Dynamic Model of Individual Decision-Making
		4 Formal Analysis of Subjunctive Reasoning
			4.1 Subjunctive Reasoning in Policy Analysis
		5 Causal Analysis
			5.1 Example of Causal and Counterfactual Analysis in a Planning Support System
		6 Modeling Collective Decision-Making in Design Behavior
		7 Conclusion
		8 Cross-References
		References
Section II: Location and Interaction
	Travel Behavior and Travel Demand
		1 Introduction
		2 The Behavior of Individuals
		3 Modeling Travel Behavior and Demand
		4 The Elasticity of Travel Demand
		5 Using Travel Behavior and Travel Demand Information
		6 Conclusions
		References
	Activity-Based Analysis
		1 Introduction
		2 Conceptual Foundations of Activity-Based Analysis
		3 Policy and Technology Context for Activity-Based Analysis
		4 Activity Data Collection and Analysis
		5 Activity-Based Modeling
		6 Frontiers in Activity-Based Analysis
		7 Conclusion
		References
	Social Network Analysis
		1 Introduction
		2 Social Media as Social Networks
		3 The Leading Social Media/Social Networking Sites
			3.1 Analysis of Facebook´s Growth
			3.2 Analysis of Google´s Growth
			3.3 Google-Facebook Competition
		4 Social Networking Sites-Print Media Competition
		5 Location and Social Network Technology
			5.1 Regional Contextual Implications for the Formation of Online Social Networks
			5.2 Hyperlocal Marketing in Social Networks
		6 Antitrust Action and Social Networks
		7 Quantitative Social Network Analytics
			7.1 Measures of Structure and Visualization
			7.2 Procedures for Content Analysis
		8 How Value Is Generated with a Social Network
			8.1 Microtargeting and Fake News
		9 Analyzing Fake News on Social Networks: Regional Science Implications
		10 Social Networks and Social Media for Illegal Activities
		11 Conclusion
		12 Cross-References
		References
			Further Reading
	Land-Use Transport Interaction Models
		1 Introduction
		2 Theory
		3 Operational Models
			3.1 Spatial Interaction Location Models
			3.2 Accessibility-Based Location Models
		4 Current Debates
			4.1 Equilibrium or Dynamics
			4.2 Macro or Micro
		5 Future Challenges
		6 Conclusions
		References
	Network Equilibrium Models for Urban Transport
		1 Introduction
		2 Historical Overview
		3 Model Formulations
			3.1 Definitions and Assumptions
			3.2 Methodological Approach
			3.3 Deterministic Route Choice over a Road Network
			3.4 Stochastic Route Choice over a Road Network
			3.5 Mode and Route Choice over Road and Fixed Cost Networks
			3.6 O-D, Mode, and Route Choice over Road and Fixed Cost Networks
		4 Model Solution and Implementation
			4.1 Solution Algorithms
			4.2 Unique Route Flows and Multi-class Link Flows
		5 Conclusions
		References
	Supply Chains and Transportation Networks
		1 Introduction
		2 Fundamental Decision-Making Concepts and Models
			2.1 The User-Optimized Problem
				2.1.1 Transportation Network Equilibrium Conditions
			2.2 The System-Optimized Problem
				2.2.1 System-Optimality Conditions
			2.3 The Braess Paradox
		3 Models with Asymmetric Link Costs
			3.1 Variational Inequality Formulations of Fixed Demand Problems
			3.2 Variational Inequality Formulations of Elastic Demand Problems
		4 Conclusions
		5 Cross-References
		References
	Computable Models of Dynamic Spatial Oligopoly from the Perspective of Differential Variational Inequalities
		1 Introduction
		2 The Notion of a Nash Equilibrium
		3 Competitive Oligopoly
			3.1 Competitive Spatial Oligopoly
			3.2 Variational Inequality (VI) Formulations of Spatial Oligopoly
			3.3 Diagonalization Algorithm for Variational Inequality
		4 Static Competitive Network Oligopoly
		5 Dynamic Network Oligopoly
			5.1 Notation
			5.2 The Firm´s Objective Functional, Dynamics, and Constraints
			5.3 The Differential Variational Inequality Formulation of Dynamic Network Oligopoly
			5.4 Discrete-Time Approximation
			5.5 A Comment About Path Variables
			5.6 Numerical Example
			5.7 Interpretation of Numerical Results
		6 Conclusions
		7 Cross-References
		References
	Complexity and Spatial Networks
		1 Introduction
		2 Complexity and Spatial Networks
		3 Static Complexity and Models
			3.1 Preface
			3.2 Static Complexity and Static Models in Spatial Economic Analysis
		4 Dynamic Complexity and Models
			4.1 Simple Models vs. Dynamic Complexity
			4.2 Less Simple Models vs. Dynamic Complexity
			4.3 Concluding Remarks
		5 Complexity and Network Analysis
			5.1 Preface
			5.2 Simple Network Models: Random and Scale-Free Networks
			5.3 Concluding Remarks
		6 Spatial Economics and Network Analysis: Connectivity, Emergence, and Resilience
		7 Conclusions
		8 Cross-References
		References
	Factor Mobility and Migration Models
		1 Introduction
		2 Welfare Impacts: The Classical View
		3 Heterogeneous Skills
		4 Heterogeneous Preferences and the Gravity Model
		5 Dynamics of Factor Mobility
		6 Migration and Agglomeration
		7 Migration Externalities and the Welfare State
		8 Conclusions
		9 Cross-References
		References
	Interregional Trade: Models and Analyses
		1 Introduction
		2 Theories on Trade With and Without Barriers
			2.1 Technological Differences: Comparative Advantage Instead of Absolute Advantage
			2.2 Trade Driven by Factor Endowment Differences: The Heckscher-Ohlin Model
			2.3 New Trade Theory: Economies of Scale and Love of Variety
		3 Interregional Trade: Alternative Approaches
			3.1 Vertical Specialization and Trade Overlap
			3.2 Spatial Production Cycles
		4 Interregional Trade Impacts from International Trade
		5 Conclusions
		6 Cross-References
		References
	Interregional Input-Output Models
		1 Introduction
		2 The Base IO Table and the Demand-Driven IO Quantity Model
		3 Adding Prices Without Interaction: The Dual, Cost-Push Price Model
		4 Adding Trade: The Interregional IO Table and Model
		5 Adding Endogenous Consumption to the Interregional IO Model
		6 Further Demo-Economic Extensions of the Interregional IO Model
		7 Conclusion
		8 Cross-References
		Appendix: The Micro-economic Foundation of the Leontief and the Ghosh IO Model
		References
Section III: Regional Housing and Labor Markets
	Real Estate and Housing Markets
		1 Introduction
		2 What Exactly Is Real Estate?
		3 Developers and the Development Process
		4 A Property and Asset Market Model
		5 The ``Internationalization´´ of Property and Asset Markets
		6 The Housing Market
			6.1 Demand, Supply, and House Price Determination
			6.2 The Effect of Planning Controls on the Housing Market
			6.3 Other Types of Intervention in the Housing Market
			6.4 Housing Market and the Macroeconomy
				6.4.1 House Prices and Consumer Expenditure
				6.4.2 The Effect of Housing on the Labor Market
				6.4.3 Housing Markets in the Global Economy
		7 Concluding Remarks
		References
	Housing Choice, Residential Mobility, and Hedonic Approaches
		1 Introduction
		2 Residential Mobility
		3 House Price Hedonics
		4 Conclusions
		References
	Migration and Labor Market Opportunities
		1 Introduction
		2 Measuring Economic Opportunities
		3 Unemployment Rates
		4 Income, Earnings, and Wages
		5 Employment Opportunities
		6 Conclusions
		References
	Job Search Theory
		1 Introduction
		2 The Standard Job Search Model
			2.1 Basic Formulation
			2.2 Extensions
				2.2.1 Violation of Assumption (v): Finite Lifetime
				2.2.2 Violation of Assumption (vi): The Seeker Receives a Different Number of Offers in Each Period
				2.2.3 Violation of Assumption (vii): Allowing Recall
				2.2.4 Violation of Assumption (viii): On-the-job Search
				2.2.5 Violation of Assumption (i): Unknown Wage Distribution
		3 The Matching Function
		4 Job Search and Migration
		5 Conclusions and Further Avenues for Research
		6 Cross-References
		References
	Commuting, Housing, and Labor Markets
		1 Introduction
		2 The Monocentric Model
		3 ``Wasteful´´ Commuting
		4 Transport Modes, Sorting, and Urban Sprawl
		5 Density, Diversity, and Agglomeration
		6 Owning, Renting, and Unemployment
		7 Conclusion
		Appendix Computation of the Reservation Wage
		References
	Labor Market Theory and Models
		1 Introduction
		2 Labor Market Theory
			2.1 Labor Supply
			2.2 Labor Demand
			2.3 Labor Market Equilibrium
		3 Defining Labor Market Areas
			3.1 Historical Efforts
			3.2 Cluster-Based Analysis
		4 Labor Market Area Analyses
			4.1 Explaining Differences in Labor Earnings
			4.2 Models of Spatial Adjustment: Booms and Busts
		5 Conclusions
		References
	Spatial Equilibrium in Labor Markets
		1 Introduction
		2 The Traditional Labor Economics View of Spatial Labor Markets
		3 An Urban/Regional View of Spatial Labor Markets
		4 Spatial Labor Market Equilibrium in the Urban/Regional View with Suggestions for Future Research
		5 Conclusions
		References
	Regional Employment and Unemployment
		1 Introduction
		2 The Determinants of Regional Disparities in Unemployment Rates
		3 A Simple Model Based on Supply and Demand
			3.1 Labor Demand
			3.2 Labor Supply
		4 Changes in Labor Demand and Productivity
		5 Changes in Industry Composition
		6 Labor Supply Constraints
			6.1 Human Capital and Skills
			6.2 Demographic Factors
				6.2.1 Age and Gender Differences
			6.3 Barriers to Labor Mobility
		7 Policy Constraints
			7.1 Social Insurance
			7.2 Place-Based Policies That Limit Mobility
		8 Conclusions
		References
	Spatial Mismatch, Poverty, and Vulnerable Populations
		1 Introduction
		2 The Theory of Spatial Mismatch
		3 The Empirical Tests of Spatial Mismatch
		4 Local Policies to Reduce Poverty
		5 Conclusions
		6 Cross-References
		References
Section IV: Regional Economic Growth
	Neoclassical Regional Growth Models
		1 Introduction
		2 The Solow-Swan Model
			2.1 Neoclassical Production Function
			2.2 Capital Accumulation Equation
			2.3 Labor Supply Function
			2.4 Solow Diagram and Dynamics of the Model
		3 Extensions of the Solow-Swan Model
			3.1 Technological Progress
			3.2 Human Capital
			3.3 Migration
		4 The Ramsey-Cass-Koopmans Model
			4.1 Households
			4.2 Firms
			4.3 Equilibrium and Transitional Dynamics
			4.4 Extensions of the Ramsey-Cass-Koopmans Model
		5 Conclusions
		References
	Endogenous Growth Theory and Regional Extensions
		1 Introduction
		2 Modern Growth Theory
			2.1 Empirical Findings on Growth
			2.2 Modeling R&D as the Source of Growth
			2.3 Modeling Education as the Source of Growth
			2.4 Concluding Remarks
		3 The Geography of Knowledge Creation and Diffusion
			3.1 Clusters and Agglomeration
			3.2 Knowledge Spillovers and the Role of Cities
			3.3 Concluding Remarks
		4 The Organization of Knowledge Creation and Diffusion
			4.1 Organizational Change as the Enabler of Economic Growth
			4.2 Entrepreneurship as the Conduit for Knowledge Spillovers
			4.3 Concluding Remarks
		5 Fundamental Causes of Growth and Development
			5.1 Institutions and Economic Growth
			5.2 Concluding Remarks
		6 Conclusions
		7 Cross-References
		References
	Incorporating Space in the Theory of Endogenous Growth: Contributions from the New Economic Geography
		1 Introduction
		2 A Simple Model of Endogenous Growth
			2.1 Demand
			2.2 Production
			2.3 Research and Development
			2.4 Equilibrium
			2.5 Balanced Growth
		3 A Two-Region Model of Growth
			3.1 Incorporating Space in the Theory of Growth
			3.2 Model Description
			3.3 Long-Run Location
		4 Spatial Consequences for Economic Growth
			4.1 Integration
			4.2 Growth in Varieties
			4.3 Consumption Growth
			4.4 Agglomeration, Freeness of Trade, and Economic Growth
			4.5 Impact of Knowledge Spillovers upon Economic Growth
		5 Variations to Incorporating Space in the Theory of Growth
			5.1 Mobility of Labor and Capital
			5.2 Vertically Linked Industry
			5.3 Assumptions About Scale Effects
			5.4 Other Characteristics
		6 Conclusions
		7 Cross-References
		References
	Demand-Driven Theories and Models of Regional Growth
		1 Introduction
		2 Taxonomy of Theoretical Perspectives on Long-Run Growth
		3 Exogenous Demand Determined Regional Expansion
		4 The Kaldor-Dixon-Thirlwall Model
		5 The Benefits of High Wages and Public Expenditure for Growth
		6 Institutional Theories of Regional Growth
		7 Conclusions
		References
	Regional Growth and Convergence Empirics
		1 Introduction
		2 Growth Regressions: From Theory to Empirics
		3 Estimating the Rate of Convergence
			3.1 Unconditional and Conditional β-Convergence
			3.2 Space and Growth
			3.3 Econometric Issues
				3.3.1 Endogeneity of Explanatory Variables
				3.3.2 Robustness of Explanatory Variables
			3.4 Panel Estimation
			3.5 Multiple Regimes and Convergence Clubs
		4 Sigma-Convergence and Distribution Approach to Convergence
			4.1 σ-Convergence
			4.2 Studying the Evolution of the Cross-Sectional Distributions
			4.3 Distribution Dynamics and Space
		5 Conclusion
		6 Cross-References
		References
	The Rise of Skills: Human Capital, the Creative Class, and Regional Development
		1 Introduction
		2 The Firm/Industry Focus in Regional Research
		3 Postindustrialism and the Knowledge Economy
		4 Human Capital
		5 Occupations and the Creative Class
		6 The Organizing Role of Place
		7 Conclusions
		References
	Local Social Capital and Regional Development
		1 Introduction
		2 What Is (Local) Social Capital?
			2.1 Local Social Capital
			2.2 Bonding and Bridging Social Capital
		3 Social Capital and Regional Development: Theory
			3.1 The Entrepreneurship Channel
			3.2 The Institutional Channel
		4 Social Capital and Regional Development: Evidence
		5 Concluding Remarks
		6 Cross-References
		References
	Population Diversity and Regional Economic Growth
		1 Introduction
		2 Diversity, Productivity, and Growth - Theoretical Arguments
		3 Measurement of Population Diversity
		4 Identification of Diversity Effects
		5 Empirical Evidence
			5.1 Regional Analyses
				5.1.1 Productivity
				5.1.2 Public Goods
				5.1.3 New Firm Formation
				5.1.4 Innovation
			5.2 Multilevel and Firm-Level Analyses
		6 Conclusions
		7 Cross-References
		References
	Infrastructure and Regional Economic Growth
		1 Introduction
		2 Terminology: Infrastructure, Regions, and Growth
		3 Infrastructure and Growth: A Spatial Equilibrium Model
		4 Causality and Spatial Spillovers
		5 Infrastructure as a Real Option
		6 Conclusions
		7 Cross-References
		References
	Wellbeing and the Region
		1 Introduction
		2 Wellbeing
		3 Conceptual Frameworks
			3.1 The Interaction of Wellbeing and Place
			3.2 The Ecology of Development
		4 Estimating Context Effects
			4.1 The Multilevel Model
		5 Applications
			5.1 The Urban Paradox
			5.2 Wellbeing Inequality
			5.3 Wellbeing and Migration
			5.4 The Temporal and Spatial Dynamics of Wellbeing
		6 Conclusions
		7 Cross-References
		References
	Spatial Policy for Growth and Equity: A Forward Look
		1 Introduction
		2 Growth Theory and Regional Development Policy
		3 Empirical Evidence and Lessons Learned in the EU and the USA
			3.1 European Regional Policy
			3.2 Regional Policy in the USA
		4 Looking Ahead
			4.1 Including Spatial Dependence and Reporting the Right Measurements
			4.2 Measuring the Actual Investments, Not Proxies
			4.3 Combining Different Strands of Theory and Techniques
		5 Conclusion
		6 Cross-References
		References
Section V: Innovation and Regional Economic Development
	The Geography of Innovation
		1 Introduction
		2 The Standard Model: Innovation as Knowledge Production
		3 What Is Innovation?
		4 Two Faces: The Multidimensional Nature of Innovation
		5 How Innovation Works: Linear or Complex?
			5.1 Entrepreneurship as Innovation
			5.2 Innovation as a Complex Process
		6 Global R&D
			6.1 Fact 1: Innovation Is Dispersing Globally
			6.2 Fact 2: Places Are Competing for Talent and Brains
			6.3 Keeping Track
		7 Policy: Changing and Reacting to Changes in the Geography of Innovation
			7.1 Regional Innovation Policy: Constructing Advantage
			7.2 Policy in a World of Global Production Networks and Global Value Chains
		8 Conclusions
		9 Cross-References
		References
	Systems of Innovation and the Learning Region
		1 Introduction
		2 Regional Governance and Learning
		3 Regional Governance and Policy Learning
		4 The Learning Region
		5 Regional Platforms, Methods, and New Innovation Policies
		6 Regional Innovation Systems Version 3.0: Learning Dilemmas
		7 Coevolution
		8 Complexity
		9 Emergence
		10 Policy Emergence and Learning
		11 Conclusions
		References
	Networks in the Innovation Process
		1 Introduction
		2 Networks and Associated Concepts
		3 Knowledge Networks in a Knowledge-Based Economy
		4 Innovation Networks and Different Types of Proximity
		5 Innovation Networks: Some Methodological Approaches
		6 Conclusions
		7 Cross References
		References
	The Geography of R&D Collaboration Networks
		1 Introduction
		2 The Networked Character of R&D
			2.1 What Are R&D Collaboration Networks?
			2.2 The EU Framework Programme for Supporting R&D Collaboration Networks
		3 R&D Collaboration Networks in a Regional Context
			3.1 Different Types of R&D Networks, and Some Empirical Lenses on Them
			3.2 Properties of R&D Collaboration Networks
			3.3 Visualization of Cross-Region R&D Collaboration Networks
			3.4 Explaining Differing Intensities of Cross-Region Collaboration
		4 Conclusions
		5 Cross-References
		References
	Generation and Diffusion of Innovation
		1 Introduction
		2 Innovations and Heterogeneity of Firms and Places
		3 Innovations, Diffusion, and Technological Development
			3.1 Renewal Activities and Firm Performance
			3.2 Characteristics and Performance of Firms
			3.3 Proximity and Networks
		4 Innovation, Regional Milieu, and Networks
			4.1 A Functional Region Is an Arena for Face-to-Face Contacts
			4.2 Urbanization and Localization
			4.3 Accessibility of Knowledge Sources
		5 Diffusion of Ideas and Technical Solutions
			5.1 The Diffusion Model
			5.2 Technology Diffusion and R&D Spillovers
			5.3 Innovation Ideas and New Products
		6 Conclusions
		References
	Cities, Knowledge, and Innovation
		1 Introduction
		2 Knowledge Creation and Diffusion
		3 Mechanisms of Knowledge Production and Diffusion in Cities
		4 Agglomeration, Variety, and Pecuniary External Effects
		5 Knowledge Spillovers in the Urban Agglomeration Literature
		6 Conclusions
		7 Cross-References
		References
	Knowledge Flows, Knowledge Externalities, and Regional Economic Development
		1 Introduction
		2 Nature of Knowledge and Knowledge Flows
		3 Aspects of Knowledge Externalities
			3.1 Economic Nature of Knowledge Externalities
			3.2 Sources of Knowledge Externalities
			3.3 Recipients of Knowledge Externalities
			3.4 Mechanisms of Knowledge Externalities
			3.5 Geographic Reach of Knowledge Externalities
			3.6 Consequences of Knowledge Externalities
		4 Knowledge Externalities and Regional Economic Development
			4.1 New Economic Geography Models and Knowledge-Based Regional Growth
			4.2 Interregional Knowledge Flows and Multiregional Growth
			4.3 Microeconomic Aspects of Knowledge Spillovers, Knowledge Externalities, and Regional Economic Development
			4.4 Entrepreneurship, Clusters, and Regional Economic Development
		5 Knowledge Externalities and Regional Economic Development: Policy Conclusions
		6 Conclusions
		7 Cross-References
		References
	Knowledge Spillovers Informed by Network Theory and Social Network Analysis
		1 Introduction
		2 Knowledge Spillovers
		3 Application of Network Theory to Knowledge Spillover Research
		4 Conclusions and Future Research
		5 Cross-References
		References
	Clusters, Local Districts, and Innovative Milieux
		1 Introduction
		2 Core Concepts
			2.1 The Marshallian Concept
			2.2 The Neo-Marshallian Industrial District Concept
			2.3 The Innovative Milieu Concept
			2.4 The Industrial Cluster Concept
		3 Similarities and Dissimilarities
			3.1 Geographies and Space
			3.2 Actors and Interactions
			3.3 Industries and Innovation
			3.4 Environment, Competition, and Cooperation
		4 Conclusions
		References
Section VI: Regional Policy
	The Case for Regional Policy: Design and Evaluation
		1 Introduction
		2 The Case for Regional Policies: Economic Considerations
		3 The Case for Regional Policies: Noneconomic Reasons
		4 What Sort of Regional Policy?
		5 How to Assess the Effectiveness of Regional Policies
		6 Conclusions
		7 Cross-References
		References
			Further Readings
	Place-Based Policies: Principles and Developing Country Applications
		1 Introduction
		2 Place-Based Policies: The Spatial Context
			2.1 Proximity, Connectivity, and Clusters
			2.2 Complementarities and Coordination
			2.3 Adjustment Mechanisms
			2.4 Spatial Equilibrium
		3 Place-Based Policies: Quantity Effects and Valuation
			3.1 Quantity Effects
			3.2 Valuation: Market Failure
			3.3 Policy Targeting
		4 Place-Based Policies: Zones, Corridors, and Regions
			4.1 Special Economic Zones
			4.2 Corridors and Long-Distance Transport Infrastructure
			4.3 Lagging Regions and Big-Push Policies
			4.4 Local Economic Development Policies
		5 Concluding Comments
		6 Cross-References
		References
	New Trends in Regional Policy: Place-Based Component and Structural Policies
		1 Introduction: Regional Disparities and Place-Based Policies
		2 Three Main Regional Scales and Their Characteristics
			2.1 Tertiarization of Economies and Competitive Edge of Large Cities
			2.2 Rural Regions Close to Cities and Agglomeration Effects
			2.3 Heterogeneity of Remote Rural Regions and Tradable Activities
		3 Differentiated Regional and Urban Policy Responses
			3.1 Policy Responses in Cities
			3.2 Policy Responses in Rural Areas Close to Cities
			3.3 Policy Responses in Remote Rural Regions
		4 Conclusion: An Evolving Regional Policy Paradigm
		5 Cross-References
		Annex: A Typology to Classify TL3 Regions
		References
			Further Reading (OECD References)
	European Regional Policy: What Can Be Learned
		1 Introduction
		2 When and Why Was the European Regional Policy Implemented?
			2.1 A Long Period Without an EU Regional Policy
			2.2 Factors Driving the Implementation of a European Regional Policy
				2.2.1 Essentially Political Arguments and Reasons Linked to the Incorporation of New Countries and the Goal of Accelerating th...
				2.2.2 Economic and Political Arguments and the Lack of a Theoretical Basis
		3 The Bases of the New Regional Policy and Their Implementation Through Multiannual Programs
			3.1 An Important Framework: Decision on the Essential Principles of the New Policy
			3.2 Key Aspects of the First Two Multiannual Programs
			3.3 A Balance of the Implementation and Results of the First Phase of the European Regional Policy: 1989-1999
		4 Changes in European Regional Policy During the 2000-2020 Period
			4.1 The 2000-2006 and 2007-2013 Programs
			4.2 The 2014-2020 Program: Key Aspects and Critical Elements
		5 What Can Be Learned? An Evaluation of Achievements, Weaknesses, and Perspectives of the European Regional Policy
			5.1 Positive Aspects of the European Regional Policy or Cohesion Policy
			5.2 Criticisms and Some Concerning Topics
			5.3 Positive Factors for Regional Development and Greater European Regional Policy Effectiveness
			5.4 Future Perspectives
		6 Conclusions
		7 Cross-References
		References
			Further Readings
	Regional Policies in East-Central Europe
		1 Introduction
		2 East-Central Europe Before Accession to the EU
			2.1 The New Beginnings
		3 Post-socialist Transformation
			3.1 Regional Patterns of Transformation
			3.2 Regional Policies Before Accession to the European Union
			3.3 Decentralization
			3.4 Preparation for Accession
			3.5 Equity or Efficiency?
		4 Regional Policies in the East-Central European Countries After Accession
			4.1 The First Period (2004-2006)
			4.2 Regional Policies in the E-CE Countries After 2007
			4.3 Models of Regional Policies
			4.4 The Effects
		5 The Future
		6 Conclusions
		7 Cross-References
		References
	Special Economic Zones and the Political Economy of Place-Based Policies
		1 Introduction
		2 A History of the Special Economic Zone
		3 Special Economic Zones: A Place in Search of a Theory
			3.1 A Policy in Search of a Place (and a Theory)
			3.2 The Institutional Angle
		4 What Have SEZs Achieved?
			4.1 Increased Foreign Investment
			4.2 Employment Creation
			4.3 Supporting Policy Reforms
		5 Conclusion
		6 Cross-References
		References
			Further Reading
	Rural Development Policies at Stake: Structural Changes and Target Evolutions During the Last 50 Years
		1 Introduction
		2 On Rural and Rural Policies
		3 Evolution of Rural Development Patterns in the Long Run: Successive Attempts to Deal with the Diversity and Sustainability o...
		4 Rural Development Policies: Big Differences According to the Major Regions of the World
			4.1 USA and Australia: The Primacy Given to Agricultural Development Policies
			4.2 China Ex-Communist, the Persistence of a Rural in the Service of Economic Development
			4.3 Europe, an Unfinished Quest for Territorial Cohesion and Sustainability of the Agricultural Sector
			4.4 Japan, a Residual Rural Policy
			4.5 Brazil, a Dual Strategy Between the Competitiveness of Agro-Industrial Sectors and the Structuring of Territorial Approach...
			4.6 What Impact of Rural Development Policies?
		5 Conclusion
		6 Cross-References
		References
Section VII: New Economic Geography, Evolutionary Economic Geography, and Regional Dynamics
	Schools of Thought on Economic Geography, Institutions, and Development
		1 Introduction
		2 New Economic Geography
		3 The New Urban Agenda
		4 The Evolutionary and Institutional School
		5 Conclusions
		6 Cross-References
		References
			Further Reading
	New Economic Geography and the City
		1 Introduction
		2 Cities and Tradable Goods
			2.1 The Spatial Economy
				2.1.1 Consumers
				2.1.2 Land Market and Urban Costs
				2.1.3 Producers
				2.1.4 Labor Market and Wages
			2.2 The Formation of Manufacturing Cities
			2.3 Extensions
				2.3.1 Agents´ Heterogeneity
				2.3.2 The Impact of Local Policies
				2.3.3 Technological Progress in Manufacturing
				2.3.4 The Bell-Shaped Curve of Spatial Development
			2.4 The Decentralization of Jobs Within Cities
				2.4.1 Polycentric Cities
				2.4.2 The Emergence of Polycentric Cities
		3 Cities and Services
			3.1 The Formation of Consumption Cities
			3.2 Extensions
				3.2.1 Spatial Externalities
				3.2.2 Exogenous Amenities
		4 The Size and Industrial Structure of Cities
			4.1 Manufactured Goods and Services
				4.1.1 The Export Base Theory Revisited
				4.1.2 Urban Hierarchy
				4.1.3 Relative Comparative Advantage
			4.2 The Impact of Trade on the Structure of Cities
		5 The Future of Cities
			5.1 Urban Crime
				5.1.1 Criminal Activity and City Size
				5.1.2 The Emergence of Large Cities with High Criminal Activity
			5.2 Are Compact Cities Ecologically Desirable?
				5.2.1 The Ecological Trade-Off Between Commuting and Transport Costs
				5.2.2 Does the Market Yield a Good, or a Bad, Ecological Outcome?
			5.3 Cities in Aging Nations
			5.4 Do New Information and Communication Technologies Foster the Death of Cities?
		6 Conclusion
		7 Cross-References
		References
	New Economic Geography After 30 Years
		1 Introduction
		2 Increasing Returns and Intra-industry Trade
			2.1 Basic Ingredients of the Model
				2.1.1 Demand
				2.1.2 Supply
				2.1.3 Equilibrium
				2.1.4 International Trade
			2.2 The Home Market Effect as a Volume Effect
			2.3 The Home Market Effect as a Factor Price Effect
		3 Adding Labor Mobility
			3.1 Core New Economic Geography Model
			3.2 Model Extensions
				3.2.1 Intermediate Goods
				3.2.2 Factors of Production
				3.2.3 Heterogeneous Firms
		4 Empirical Testing
		5 Policy Consequences
		6 Conclusions
		7 Cross-References
		References
			Further Reading
	Relational and Evolutionary Economic Geography
		1 Introduction
		2 Segmented Cluster Paradigms
		3 Network Relations and the Knowledge-Based Conception of Clusters
		4 Regional Path Dependence and Cluster Life Cycles
		5 Toward an Integrated Relational-Evolutionary Model of Cluster Dynamics
		6 Conclusions
		7 Cross-References
		References
	Path Dependence and the Spatial Economy: Putting History in Its Place
		1 Introduction
		2 Path Dependence as Self-Reinforcing Spatial Economic ``Lock-In´´: What Does It Mean and How Common Is It?
		3 Rethinking Path Dependence: From ``Lock-In´´ to Ongoing Path Evolution
		4 Toward a ``Developmental-Evolutionary´´ Model of Path Dependence in the Spatial Economy
		5 Conclusion
		6 Cross-References
		References
	Agglomeration and Jobs
		1 Introduction
		2 Cities, Worker Productivity, and Wages
		3 Firm Dynamics Within Cities
		4 City Functionality, Urban Systems, and Policies
		5 Conclusions
		6 Cross-References
		References
	Changes in Economic Geography Theory and the Dynamics of Technological Change
		1 Introduction
		2 The Linear Model of Innovation: The A-Spatial Benchmark
		3 Physical ``Distance´´ Between Innovative Agents and Knowledge Flows
		4 Innovative Agents ``in Context´´: Local Specialization Patterns and Institutions
			4.1 Economic Places: Industrial Specialization
			4.2 Relational-Institutional Places
		5 Bringing Different Approaches Together (1): Non-spatial Proximities, ``Integrated´´ Frameworks, and Local-Global Connectivity
		6 Bringing Different Approaches Together (2): Local-Global Connectivity
		7 Conclusions
		8 Cross-References
		References
	Geographical Economics and Policy
		1 Introduction
		2 Empirical Analysis: Data
		3 Empirical Analysis: Causality
		4 Policy Evaluation
		5 Conclusions
		6 Cross-References
		References
	New Geography Location Analytics
		1 Introduction
		2 Analytics Overview
		3 Service Allocation
		4 Spatial Optimization
		5 Location Modeling
			5.1 Transportation
			5.2 Congestion
			5.3 Dispersion
			5.4 Economies of Scale
		6 Conclusions
		7 Cross-References
		References
			Further Reading
	Geography and Entrepreneurship
		1 Introduction
		2 Why Study the Geography of Entrepreneurship?
		3 Entrepreneurs and Their Support Systems
			3.1 Entrepreneurship: Individual Characteristics
			3.2 Entrepreneurship: Demand Factors
			3.3 Entrepreneurship: Supply Factors
			3.4 Social but Real: Local Informal Institutions
			3.5 Local Formal Institutions: Permits and Politics
			3.6 The ``Correct´´ Spatial Level of Observation
		4 Concluding Remarks
		5 Cross-References
		References
	The New Economic Geography in the Context of Migration
		1 Introduction
		2 Migration in New Economic Geography Models
			2.1 Putting New Economic Geography Models into Practice: Examples
			2.2 Does the New Economic Geography Realistically Portray Migration?
		3 Conclusion
		4 Cross-References
		References
			Further Reading
	Environmental Conditions and New Geography: The Case of Climate Change Impact on Agriculture and Transportation
		1 Introduction
		2 Impact on Agriculture
			2.1 Current State of the Literature
			2.2 Challenges Ahead
		3 Impact on the Transportation System
			3.1 Literature Review
			3.2 Climate Change Impact and Resilience
		4 Conclusion
		5 Cross-References
		References
	Social Capital, Innovativeness, and the New Economic Geography
		1 Introduction
		2 Social Capital and Innovativeness
		3 Social Capital, Innovativeness, and the New Economic Geography
			3.1 A Short Introduction to New Economic Geography
			3.2 New Economic Geography and Knowledge-Based Growth
			3.3 New Economic Geography, Social Capital, and Innovativeness
		4 Conclusion
		5 Cross-References
		References
Section VIII: Environment and Natural Resources
	Spatial Environmental and Natural Resource Economics
		1 Introduction
		2 Spatial Heterogeneity and Optimal Policy
			2.1 Spatial Heterogeneity in Conservation
			2.2 Effect of Space on Market-Based Solutions
		3 Spatial Elements of Nonmarket Valuation
			3.1 Hedonic Valuation
			3.2 Travel-Cost Analysis
			3.3 Stated Preference Valuation Techniques
		4 Spatial Empirical Identification Strategies
			4.1 Environment and Health
			4.2 Evaluations of Protected Areas and Payment for Environmental Services Programs
		5 Models of Behavior in Space
			5.1 Spatial Sorting Models
			5.2 Behavior in Resource Use and Conservation
		6 Conclusions
		7 Cross-References
		References
			Further Reading
	Dynamic and Stochastic Analysis of Environmental and Natural Resources
		1 Introduction
		2 The Canonical Resource Management Model
		3 Resource Management Under Uncertainty
			3.1 Uncertain T
				3.1.1 Ignorance Uncertainty
				3.1.2 Exogenous Uncertainty
			3.2 Stochastic Stock Dynamics
			3.3 Discounting
			3.4 Instantaneous Benefit
			3.5 Post-Planning Value
			3.6 Compound Uncertainties
		4 Integrating Natural Resources and Aggregate Growth Models
			4.1 An Integrated Model
			4.2 Uncertainty in the Integrated Model
		5 Irreversibility and Uncertainty
		6 Knightian Uncertainty
		7 Conclusions
		References
	Game Theoretic Modeling in Environmental and Resource Economics
		1 Introduction
		2 Static Games
			2.1 The Emissions Game
			2.2 Sustaining Cooperation in a Noncooperative World
				2.2.1 Stage 2: The Emissions Game Revisited
				2.2.2 Stage 1: The IEA Game
		3 Dynamic Games: Some Concepts
		4 Transboundary Stock Pollutants
			4.1 A Benchmark Model
			4.2 Centralized Versus Regional Control of Pollution
		5 Provision of Clean Air and Interregional Mobility of Capital
		6 Conclusion
		References
	Methods of Environmental Valuation
		1 Introduction
		2 Benefit Measures
			2.1 Use Values
			2.2 Nonuse or Passive Use Values
		3 Overview of Methods and How They Relate to Values
		4 Hedonic Property Method
			4.1 Economic Theory Underlying the Hedonic Property Method
			4.2 Data Requirements
			4.3 Econometric Modeling Including Spatial Dimensions
		5 Travel Cost Models
			5.1 Single-Site Trip Frequency Models of Recreation Demand
			5.2 Valuing Quality Changes Using Trip Frequency Models
			5.3 Multiple-Site Selection Models
			5.4 Data Requirements for Travel Cost Models
		6 Stated Preference Models
			6.1 Contingent Valuation Method
			6.2 Choice Experiments
			6.3 The Issue of Bias in Stated Preference Surveys
		7 Combining Stated and Revealed Preference Methods and Data
		8 Benefit Transfer
		9 Conclusion
		10 Cross-References
		References
	The Hedonic Method for Valuing Environmental Policies and Quality
		1 Introduction
		2 Value of Statistical Life
		3 Hedonic Valuation of Environmental Quality
		4 Wage Compensation for Environmental Amenities
		5 Property Value Compensation for Environmental Amenities
		6 Wage and Property Value Hedonics Are Not Alternatives: The Multimarket Hedonic Method
		7 What if Single-Market Hedonic Analyses Are Employed Rather than Multimarket Analyses?
		8 Conclusion
		References
	Materials Balance Models
		1 Introduction
			1.1 Material Balance by Total Mass
			1.2 Material Balance by Element
		2 Applications of Material Flow Analysis
			2.1 Studying Flows of Substances, Materials, and Products
			2.2 Studying Firms, Sectors, and Geographical Areas
		3 Case Studies
			3.1 Material Balance Applied to Chemical Industry
				3.1.1 Inorganic Chemicals
					Sulfuric Acid
					Ammonia
					Chlorine and Sodium Hydroxide
					Results
				3.1.2 Organic Chemicals
			3.2 Mass Balance Applied to Rare Earth Metals
				3.2.1 Dopants for Semiconductor in Phosphors
				3.2.2 Catalysts
					Fluid Catalytic Cracking (FCC)
					Autocatalyst Converters
				3.2.3 Electrical Storage in NiMH Batteries
				3.2.4 Alloying Elements
					Wind Turbines
					Electric Vehicles
					Magnetic Resonance Imaging (MRI)
					Minor Alloys
				3.2.5 Additives
					Glass Industry
					Ceramic Industry
				3.2.6 Abrasive
				3.2.7 Results of MFA of Rare Earths
		4 The Laws of Thermodynamics
		5 Conclusions
		References
	Climate Change and Regional Impacts
		1 Introduction
		2 Expected Impacts Based on Level of Urbanization
			2.1 Density-Dependent Impacts
			2.2 Agriculture and Forests Impact
			2.3 Natural Landscapes
		3 Regional Differences in Risk and Mitigation Capacity
			3.1 North America
			3.2 Europe
			3.3 Asia
			3.4 Latin America
			3.5 Africa
			3.6 Australia and New Zealand
		4 Interconnectivity and Reach of Impacts
		5 Global Social Justice
		6 Conclusion
		Appendix
		References
	Urban and Regional Sustainability
		1 Introduction
		2 Principles
		3 Sustainable Cities and Regions
		4 Implementing Sustainability Goals
		5 Conclusion
		6 Cross-References
		References
	Population and the Environment
		1 Introduction
		2 Century of Dramatic Population Growth and Population-Environment Theories
		3 Regional Differentials
		4 Micro Perspective on Population Decisions and Community Resilience and High-Level Effects
		5 Conclusions
		6 Cross-References
		References
Section IX: Spatial Analysis and Geocomputation
	Geographic Information Science
		1 Introduction
		2 Principles of GIScience
			2.1 The Characteristics of Geographic Information
			2.2 Dealing with Large Data Volumes
			2.3 Scale-Related Issues
			2.4 Simulation in GIScience
			2.5 Achievements of GIScience
		3 Changing Practice and Changing Problems
			3.1 CyberGIS and Parallel Processing
			3.2 The Social Context of GISystems
			3.3 GIScience and Data Science
			3.4 Neogeography, Wikification, Open Data, and Consumer Data
		4 Conclusion
		References
	Geospatial Analysis and Geocomputation: Concepts and Modeling Tools
		1 Introduction
		2 Geocomputation and Spatial Analysis
		3 Geocomputational Models Inspired by Biological Analogies
		4 Networks, Tracks, and Distance Computation
		5 Computational Spatial Statistics
		6 Conclusions
		References
	Bayesian Spatial Analysis
		1 Introduction
		2 Kinds of Spatial Data
		3 Bayesian Approaches for Point Data
		4 A Roughness-Based Prior
		5 Bayesian Approaches for Point-Based Measurement Data
		6 Region-Based Measurement Data
		7 Conclusions
		References
	Geovisualization
		1 Introduction
		2 Statistical Graphics
			2.1 Histograms
			2.2 Box Plots
			2.3 Scatterplots
			2.4 Parallel Coordinate Plots
		3 Choropleth Maps
			3.1 Color
			3.2 Class Intervals
		4 Exploratory Data Analysis
		5 Exploring Time
			5.1 Animation
			5.2 Space-Time Cube
		6 Conclusion
		References
	Web-Based Tools for Exploratory Spatial Data Analysis
		1 Introduction
		2 Exploratory Spatial Data Analysis
		3 Exploratory Spatial Temporal Data Analysis
		4 The Evolution of Tools for Exploratory Data Analysis/Exploratory Spatial Temporal Data Analysis
			4.1 Early Desktop Applications of ESDA/ESTDA
			4.2 Coupling or Extending GIS with ESDA/ESTDA Functionality
			4.3 Developments in R Related to ESDA/ESTDA
		5 Early Web Developments in ESDA
		6 The Move Toward Web-Based Mapping
			6.1 Open Source Software and Open Data
			6.2 Movement Toward a Service Oriented Architecture
			6.3 The Emergence of Commercial Web Mapping Services
			6.4 Key Developments in Python and PySal
		7 Web-Based Tools for ESDA/ESTDA
			7.1 Web Mapping Platforms and Tools with Little ESDA/ESTDA Functionality
			7.2 Online Versions of GIS Software
			7.3 Building Customized Web Applications
			7.4 GeoDa-Web
			7.5 CyberGIS
		8 Conclusion
		9 Cross-References
		References
			Further Reading
	Spatio-temporal Data Mining
		1 Introduction
		2 Spatio-temporal Dependence
			2.1 Statistical Approaches
			2.2 Data Mining Approaches
			2.3 Summary
		3 Space-Time Forecasting and Prediction
			3.1 Statistical (Parametric) Models
				3.1.1 Space-Time Autoregressive Integrated Moving Average
				3.1.2 Spatial Panel Data Models
				3.1.3 Space-Time Geographically Weighted Regression
				3.1.4 Space-Time Geostatistics
			3.2 Machine Learning (Nonparametric) Approaches
				3.2.1 Artificial Neural Networks
				3.2.2 Kernel Methods
			3.3 Summary
		4 Space-Time Clustering
			4.1 Partitioning and Model-Based Clustering
			4.2 Hierarchical Clustering
			4.3 Density- and Grid-Based Clustering
			4.4 Statistical Tests for Clustering
			4.5 Summary
		5 Spatio-temporal Visualization
			5.1 Two-Dimensional Maps
			5.2 Three-Dimensional Visualization
			5.3 Animated Maps
			5.4 Visual Analytics: The Current Visualization Trend
			5.5 Summary
		6 Conclusion
		7 Cross-References
		References
	Scale, Aggregation, and the Modifiable Areal Unit Problem
		1 Introduction
		2 MAUP Definitions
			2.1 The Scale Effect
			2.2 The Zonation Effect
		3 Approaches to Understanding
			3.1 From Univariate Statistics to Spatial Models
			3.2 The Importance of Spatial Autocorrelation
			3.3 Exploring the MAUP Through Zone Design
		4 Conclusion
		5 Cross-References
		References
	Spatial Network Analysis
		1 Introduction
		2 Spatial Networks and Graphs
			2.1 Basic Definitions
			2.2 Vertex Degree, Graph Density, and Local Clustering
			2.3 Spatial Embedding and Planarity
			2.4 Shortest Paths, Distances, and Network Efficiencies
			2.5 Acyclic Graphs
		3 Higher Order Structure in Networks
			3.1 Network Centrality
			3.2 Community detection, Modules, and Subgraphs
			3.3 Structural Equivalence
		4 Generating Networks: Spatial Network Models
			4.1 Spatial Networks from Point Patterns
			4.2 Spatial Small Worlds
			4.3 Growing Spatial Networks: Preferential Attachment
			4.4 Dual Graphs: New Graphs from Old
		5 Matrix and Adjacency List Representation of Graphs
		6 Properties of Real-World Spatial Networks
			6.1 Road Networks
			6.2 Transport Networks
			6.3 Other Spatially Embedded Networks
			6.4 Network Routing
		7 Conclusions
		8 Cross-References
		References
	Cellular Automata and Agent-Based Models
		1 Introduction
		2 Complexity and Models of Complexity
		3 Cellular Automata: Origins
		4 Cellular Automata: Key Contributions
		5 Cellular Automata: Applications
		6 Agent-Based Models: Origins
		7 Agent-Based Models: Key Contributions
		8 Agent-Based Models: Applications
		9 Conclusion
		References
	Spatial Microsimulation
		1 Introduction
		2 Defining Spatial Microsimulation
		3 Static and Dynamic
		4 Microsimulation as a Tool for Policy
		5 Spatial Microsimulation Algorithms
			5.1 Deterministic Reweighting
			5.2 Conditional Probabilities
			5.3 Simulated Annealing
		6 Which Algorithm?
		7 Case Study: Estimating Smoking Prevalence Locally
		8 Conclusions
		9 Cross-References
		References
	Fuzzy Modeling in Spatial Analysis
		1 Introduction
		2 Fundamental Concepts and Operations of Fuzzy Set Theory
			2.1 Basic Definitions and Operations
			2.2 Fuzzy Relations
			2.3 Linguistic Variable and Possibility Distribution
		3 Spatial Data Clustering
			3.1 Problems of the Two-Valued Logic Approach to Regionalization
			3.2 Representation of a Region
			3.3 The Core and Boundary of a Region
			3.4 Regional Assignment Procedure
			3.5 Grouping via Fuzzy Relation and Fuzzy Clustering
				3.5.1 Grouping Based on the Concept of Similarity
				3.5.2 Grouping for Regions via Fuzzy c-Means Clustering
		4 Spatial Optimization Problems
			4.1 Optimization of a Precise Objective Function over a Fuzzy Constraint Set
			4.2 Optimization of a Fuzzy Objective Function over a Fuzzy Constraint Set
		5 Conclusion
		6 Cross-References
		References
Section X: Spatial Statistics
	Geostatistical Models and Spatial Interpolation
		1 Introduction
		2 Characterizing Spatial Variation
			2.1 The Experimental Variogram
			2.2 Variogram Model Fitting
			2.3 Example
		3 Spatial Interpolation with Kriging
			3.1 Simple and Ordinary Kriging
			3.2 Simulation
		4 The Change of Support Problem
			4.1 Regularization
			4.2 Variogram Deconvolution
			4.3 Area-to-Point Kriging
		5 Geostatistics and Regional Science
		6 Conclusions
		References
	Spatial Sampling
		1 Introduction
			1.1 Context
			1.2 One-Dimensional Sampling
			1.3 Two-Dimensional Sampling
		2 Geostatistical Sampling
			2.1 Designs for Variogram Estimation
			2.2 Optimal Designs to Minimize the Kriging Variance
			2.3 Sampling in a Multivariate Context
		3 Second-Phase Sampling
		4 Numerical Example
		5 Search Strategies
		6 Conclusion
		7 Cross-References
		References
	Exploratory Spatial Data Analysis
		1 Introduction
		2 Types of Spatial Data
		3 Basic Visualization and Exploration Techniques via Maps
			3.1 Choropleth Maps
			3.2 Linked Micromap Plots
			3.3 Conditioned Choropleth Maps
		4 ESDA via Linking and Brushing
		5 Local Indicators of Spatial Association (LISA)
		6 Software for ESDA
			6.1 ESDA and GIS
			6.2 Stand-Alone Software for ESDA
		7 Conclusions
		8 Cross-References
		References
			Further Reading
	Spatial Autocorrelation and Moran Eigenvector Spatial Filtering
		1 Introduction
			1.1 Spatial Autocorrelation: A Conceptual Overview
			1.2 Spatial Filtering: A Conceptual Overview
		2 Moran Eigenvector Spatial Filtering
			2.1 Eigenvectors of a Spatial Weight Matrix
			2.2 An Eigenvector Spatial Filter Specification of the Linear Regression Model
			2.3 The Numerical Calculation of Eigenvectors
				2.3.1 R Code for Generating MCM Eigenvectors
				2.3.2 Matlab Code for Generating MCM Eigenvectors
				2.3.3 MINITAB Code for Generating MCM Eigenvectors
				2.3.4 FORTRAN Code for Generating MCM Eigenvectors
				2.3.5 SAS Code for Generating MCM Eigenvectors
			2.4 Statistical Features of Moran Eigenvector Spatial Filtering
		3 Comparisons with the Spatial Lag Term
		4 An Empirical Example: An Moran Eigenvector Spatial Filtering Methodology Example
		5 Extensions to Spatial Interaction Data Analysis
		6 Extensions to Space-Time Data Analysis
		7 Conclusions
		8 Cross-References
		Appendix A
		References
	Geographically Weighted Regression
		1 Introduction
		2 Model Specification
		3 Model Estimation
		4 Implementation
		5 Issues
			5.1 Statistical Inference
			5.2 Collinearity
		6 Diagnostic Tools
		7 Extensions
		8 Alternatives
			8.1 Bayesian Spatially Varying Coefficient Models
			8.2 Local Weighted Quantile Sum Regression
		9 Application: Residential Chlordane Exposure in Los Angeles County
		10 Conclusions
		11 Cross-References
		References
	Bayesian Modeling of Spatial Data
		1 Introduction
		2 Spatially Autoregressive Regression
		3 Disease Mapping: Conditional Autoregressive Priors in Spatial Epidemiology
		4 Models for Point Referenced Data (Spatial Processes)
		5 Space-Time Models
		6 Point Pattern Data
		7 Focused Clustering Models
		8 Conclusion
		References
	Spatial Models Using Laplace Approximation Methods
		1 Introduction
		2 Integrated Nested Laplace Approximation
			2.1 Gaussian Markov Random Field
			2.2 Priors
			2.3 Model Criticism and Selection
			2.4 Implementation
			2.5 Other Features
		3 Spatial Models
			3.1 Geoadditive Mixed Effects Models
			3.2 Disease Mapping
				3.2.1 Geostatistical Models
				3.2.2 Point Process Models
				3.2.3 Examples
				3.2.4 Geostatistics
				3.2.5 Lattice Data
				3.2.6 Point Patterns
		4 Conclusions
		5 Cross-References
		References
	Spatial Data and Spatial Statistics
		1 Introduction
		2 Analyzing Spatial Data: Four Challenges
			2.1 Spatial Dependency
			2.2 Spatial Heterogeneity
			2.3 Data Sparsity
			2.4 Uncertainty
		3 Spatial Statistical Modeling
			3.1 Spatial Statistical Modeling: The Big Picture
			3.2 Spatial Statistical Modeling: Frequentist or Bayesian Inference?
		4 Approaches to Modeling Spatial and Spatial-Temporal Data
			4.1 Bayesian Spatial Econometric Models
			4.2 Bayesian Spatial Hierarchical Models
			4.3 Comparing Spatial Econometric and Hierarchical Modeling Approaches
		5 Conclusion
		6 Cross-References
		References
	Multivariate Spatial Process Models
		1 Introduction
		2 Classical Multivariate Geostatistics
			2.1 Co-kriging
		3 Some Theory for Cross-Covariance Functions
		4 Separable Models
		5 Co-regionalization
			5.1 Nested Models
			5.2 Conditional Development of the Linear Models of Co-Regionalization
			5.3 A Spatially Varying Linear Model of Co-Regionalization
		6 Other Constructive Approaches
			6.1 Kernel Convolution Methods
			6.2 Convolution of Covariance Functions Approaches
			6.3 A Latent Dimension Approach
			6.4 Matérn Cross-Covariance Functions
		7 Multivariate Spatial Regression Models
			7.1 Modeling with Co-regionalization
			7.2 Generalized Linear Model Setting
			7.3 Spatially Varying Coefficients Models
				7.3.1 Details for a Single Covariate
		8 An Example
		9 Conclusions
		10 Cross-References
		References
	Spatial Dynamics and Space-Time Data Analysis
		1 Introduction
		2 Spatial Dynamics in Regional Science
		3 Exploratory Space-Time Data Analysis
			3.1 ETSDA Methods
			3.2 ESTDA Methods
		4 Conclusion
		References
	Spatial Clustering and Autocorrelation of Health Events
		1 Introduction
		2 What Do We Want?
		3 What Data Do We Have?
		4 What Tools Do We Have and What Do They Find?
			4.1 Indices of Spatial Autocorrelation
			4.2 Classification Methods
			4.3 Cluster Detection in Point-Level Data: Scan Statistics and Intensity Estimates
			4.4 Cluster Detection for Area-Level Data
			4.5 Other Approaches
		5 What Do We Do with a Cluster?
		6 Conclusion
		7 Cross-References
		References
Section XI: Spatial Econometrics
	Maximum Likelihood Estimation
		1 Introduction
		2 Likelihoods
			2.1 Likelihood with Continuous y and Normal Disturbances
			2.2 Likelihood with Binomial y and Normal Disturbances
		3 Inference and Estimation
			3.1 Simplest Approach to Likelihood Estimation and Inference
			3.2 Variance-Covariance Matrix Approach to Likelihood Inference
		4 Spatial Error Model Example
		5 Computational Details
			5.1 Concentrated Log-Likelihood
			5.2 Sparsity
			5.3 Log-Determinant Calculations
		6 Conclusions
		References
	Bayesian Markov Chain Monte Carlo Estimation
		1 Introduction
		2 Spatial Regression and Prior Modeling
		3 Bayesian Inference via MCMC
			3.1 A Brief Review of MCMC Theory
			3.2 Stationary Distributions and a Central Limit Theorem for MCMC
		4 MCMC Algorithms
			4.1 Gibbs Sampling
			4.2 Metropolis-Hastings
				4.2.1 The Metropolis Algorithm
				4.2.2 Metropolis-Hasting Algorithm
			4.3 Choice of Proposal Distribution
		5 Practical Considerations
			5.1 Setting Up and Monitoring MCMC Chains
			5.2 Other Tools and Post-Sampling Inference
		6 MCMC Inference for the Spatial Durbin Model with Marginal Augmentation
		7 Spatiotemporal Model
			7.1 Empirical Application
			7.2 Estimation Results
		8 Conclusion
		References
	Instrumental Variables/Method of Moments Estimation
		1 Introduction
		2 A Primer on GMM Estimation
			2.1 Model Specification and Moment Conditions
			2.2 One-Step GMM Estimation
			2.3 Two-Step GMM Estimation
		3 GMM Estimation of Models with Spatial Lags
			3.1 GMM Estimation of Spatial-Autoregressive Parameter
			3.2 GMM Estimation of Regression Parameters
			3.3 Guide to Literature
			3.4 Exemplary GMM Estimators
		4 GMM Estimation of Models with Spatial Mixing
		5 Conclusion
		References
	Cross-Section Spatial Regression Models
		1 Introduction
		2 Spatial Effects in Cross-Sectional Models
			2.1 Forms of Spatial Autocorrelation in Regression Models
			2.2 Spatial Lag Model
				2.2.1 Multiplier and Diffusion Effects
				2.2.2 Interpretation of Coefficient Estimates
				2.2.3 Variance-Covariance Matrix
				2.2.4 Endogenous Spatial Lag and Heteroskedasticity
			2.3 Cross-Regressive Model: Lagged Exogenous Variable
			2.4 Models with Spatial Error Autocorrelation
				2.4.1 Spatial Autoregressive Process
					Spatial Diffusion
					Variance-Covariance Matrix
					Constrained Spatial Durbin Model
				2.4.2 Spatial Moving Average Process
				2.4.3 Kelejian and Robinson Specification
				2.4.4 Direct Representation and Non-Parametric Specifications
			2.5 Encompassing Specifications
			2.6 Higher-Order Spatial Models
			2.7 Heteroskedasticity
			2.8 Parameter Instability
		3 Specification Tests in Spatial Cross-Sectional Models
			3.1 Moran´s I Test
			3.2 Tests of a Single Assumption
				3.2.1 Spatial Error Autocorrelation
				3.2.2 Kelejian-Robinson Specification
				3.2.3 Common Factor Test
				3.2.4 Test of an Endogenous Spatial Lag
			3.3 Tests in Presence of Spatial Autocorrelation or Spatial Lag
				3.3.1 Joint Test
				3.3.2 Conditional Tests
				3.3.3 Robust Tests
			3.4 Specification Search Strategies
			3.5 Non-Nested Tests
			3.6 Spatial Autocorrelation and Spatial Heterogeneity
				3.6.1 Spatial Autocorrelation and Heteroskedasticity
				3.6.2 Spatial Autocorrelation and Parameter Instability
		4 Conclusion
		References
	Spatial Panel Models and Common Factors
		1 Introduction
		2 Linear Spatial Dependence Models for Cross-Section Data
		3 Linear Spatial Dependence Models for Panel Data
		4 Dynamic Linear Spatial Dependence Models for Panel Data
		5 Direct, Indirect, and Spatial Spillover Effects
		6 Empirical Illustration
		7 Conclusion
		8 Cross-References
		References
	Limited and Censored Dependent Variable Models
		1 Introduction
		2 Limited and Censored Variable Models
			2.1 Models for Discrete Responses
			2.2 Models for Censored and Truncated Data
		3 Models Incorporating Spatial Effects
			3.1 Geographically Weighted Regression
			3.2 Spatial Filtering
			3.3 Spatial Regression
		4 Estimation Approaches
			4.1 Maximum Simulated Likelihood Estimation (MSLE)
			4.2 Composite Marginal Likelihood
			4.3 Bayesian Approach
		5 Conclusions
		References
	Spatial Econometric OD-Flow Models
		1 Introduction to Gravity or Spatial Interaction Models
		2 Gravity or Spatial Interaction Models Based on Independence
		3 Spatial Autoregressive Interaction Models
		4 Problems that Arise in Applied Modeling of Flows
		5 Interpreting Spatial Interaction Models
			5.1 A Numerical Illustration for the Nonspatial Gravity Model
			5.2 A Numerical Illustration for the Spatial Gravity Model
		6 Conclusion
		References
	Interpreting Spatial Econometric Models
		1 Introduction
		2 Spatial Regression Models
			2.1 Spatial Error Models
			2.2 Spatial Lag of X Models
			2.3 Spatial Lag of y Models
			2.4 Measures of Dispersion for the Effects Estimates
			2.5 Partitioning Global Effects Estimates Over Space
		3 Applications of Spatial Regression Models
			3.1 Spatial Error Models
			3.2 SLX and SDEM Models
			3.3 SAR and SDM Models
		4 Conclusion
		References
	Heterogeneous Coefficient Spatial Regression Panel Models
		1 Introduction
		2 Independent Heterogeneous Coefficient Models
		3 Spatial Autoregressive Processes and Dependence
		4 Details Regarding the Heterogeneous Coefficient Spatial Autoregressive Model
		5 Markov Chain Monte Carlo Estimation of the Heterogeneous Coefficients Spatial Autoregressive Panel Model
			5.1 Bayesian Prior Information
			5.2 A Matrix Exponential Spatial Specification
		6 Interpreting Model Estimates
		7 Applications of the Heterogeneous Coefficient Spatial Regression Panel Models
			7.1 Gas Station Pricing Application
			7.2 Regional Wage Curve Application
			7.3 Knowledge Production Function
		8 Conclusions
		9 Cross-References
		References
	Endogeneity in Spatial Models
		1 Introduction
		2 Impact of Spatial Autocorrelation on Estimation and Testing for Endogeneity
		3 Estimation of Spatial Models with Endogeneity
			3.1 Instrumental Variables and GMM
				3.1.1 Single-Equation Models
				3.1.2 Multiple Equation Models
			3.2 Models for Panel Data
			3.3 Other Identification Strategies
		4 Conclusion
		5 Cross-References
		References
	Using Convex Combinations of Spatial Weights in Spatial Autoregressive Models
		1 Introduction
			1.1 Multiple Connectivity Matrices
			1.2 Convex Combinations of Multiple Weight Matrices
			1.3 Bayesian Estimation of Convex Combinations of Weight Matrix Models
		2 Computational Issues in Estimating Convex Combination of Weights Models
			2.1 MCMC Sampling of the Parameters Γ
			2.2 An Approximation to the Log-Determinant
			2.3 Efficient Calculation of Partial Derivatives for the Model
		3 Bayesian Model Averaging for Multiple Models
		4 Conclusion
		5 Cross References
		References
Author Index
Subject Index