A Neoclassical Approach to Urban Systems Diffusion

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Abstract
This paper develops a model for urban systems diffusion that relies on classical models of communication. Unlike previous modeling attempts, a strict central-place distribution of cities is not assumed, and communication between cities of all ranks is allowed. The model is subjected to a normative approach to determine the best use of the communication channels in reaching a given level of adoption at a minimal cost within a fixed planning period. It is shown that the choice of policies depends on the marginal productivities and costs of the communication channels. Given the initial conditions set forth in the paper, the most likely diffusion pattern is initially hierarchical, followed by increasing neighborhood diffusion.

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