Hierarchy Models for the Organization of Economic Spaces

Few classic models put forward mathematical tools and operational rules that are sufficiently flexible and consistent to contribute to regional development policy. The models discussed in this work form part of a group of structured models based on regional potentialities used to organize economic spaces. These are essentially formed by the elements of two matrices: one matrix whose elements represent factors demanded by industries and another matrix whose elements represent factors supplied by geographic zones. The first three models are structured on linear spaces. The fourth model – a proposal – employs an algorithm based on the theory of fuzzy sets and is intended to yield a hierarchy of regions or elementary zones using potentiality indices. This model has been structured to provide adequate operators for empirical reality. The models are intended to support the information system that enables a public administrator to formulate adequate policies for industrial location and development.