Settlement Formation: Part II: Numerical Simulation.

Numerical simulations of several simple versions of a recently formulated dynamic theory of settlement formation are implemented. Preparatory work includes: the coarse graining of the equations of motion; the explicit choice of the spatial joint probability of production and consumption; and the calibration of all model parameters. Different combinations of fixed costs and transportation cost parameters lead to a variety of settlement structures. These results of the dynamic simulation can be interpreted in terms of well-known empirical regularities of settlement formation theory.