Re: Re: Densification
Economic models start with the basic components that make up growth or contraction such as consumption, exports and investment, the first applied statistic taken out is the economic multiplier which displays the proportional benefit of any of the growth components or put simply if 1 euro is invested what return will this give to the economy over the year or years as the case may be. All components have differing effects on the overall economy but the main components are accepted to move broadly in a similar proportion within particular geographical zones or economic spheres.
Over time a small number of inter-relationships have become universally accepted such as the relationship between investment and growth, inflation and loss of competitiveness. Most complex economic theories are based upon either how to stimulate/control growth or how to affect competitiveness. As opposed to re-invent the wheel most economists use the existing economic model and run this model in its present form with the exact mathematical equations but change one or possibly two components in the model.
The changes applied to the model often appear to be an attempt to mathematically express a perceived change in consumer behaviour or consumer demand as assessed as a new psychological tendency/perception or the benefits of an entirely new technology or depletion of a commonly used commodity. It is in a sentance an attempt to analyse if a change were made in any of the existing components in the model to what extent consumer behaviour would change and to what extent would this distort or refine the existing model.
Strategic planning is similar in that our built and natural environments are a result of the forces of supply and demand for whatever period our particular urban environment has been in existance. Strategic planning is an exercise how to assess which imported spatial models would best adapt to the particular set of characteristics that make up a particular region. These models have become very complicated computer models where the effects of any change in the model can be weighed up ceteris paribus or all other factors unchanged. There are many applications powered by G.I.S. that can in reasonably accurate way predict the exact effects of any proposed change in the existing environment in relation to traffic/travel times, water quality and remaining economic growth capacity based upon the ability of the existing infrastructural platform to accomodate further economic growth.