Simulating Urban Transition in Major Socio-Economic Shocks

This paper presents an agent-based model that simulates the dynamic process of urban transition in major socio-economic shocks. The model features the coupled housing and labour markets in heterogeneous neighbourhoods in a city that is going through a major transition in the industrial structure. We consider a scenario where the old or traditional industry is gradually replaced by a new industry. Preliminary results from the scenario analysis are presented. This paper makes several contributions: 1) We introduce feedback links between the housing and the labour market via connecting the choices of individuals and businesses and the evolution of neighbourhoods; 2) We introduce links between the local workers, businesses and the overall industrial structure in a complex urban system; 3) Finally, we propose a complex system approach to major socio-economic transitions in an urban system.