In this paper we explore the claim that spatial interactions among cities are significant drivers of their growth. We assert that reallocation of ideas among cities is a source of improved allocation of resources. Following Broitman et al (2020), we propose a closed economy, agent-based model...

We present a comprehensive agent-based model of a closed system of cities. The model includes two types of agents - employees and firms. Firms compete for workers and make decisions concerning what to produce and whether to adopt innovations. Individual employees make migration decisions. Some...