Spatial Trade and Factor Markets

Is it possible to integrate ideas on the spatial equation of labor markets, on trade, and on demand? Examining the problems involved in an overall numerical model, it is argued that current concepts such as demand curves or spatial price equilibria take the system as given and do not allow its derivation. Also, data are not available in the form the models require, incorporating the interactions which need to be studied separately. Simulation models do not suffer from these defects and can employ more realistic formulations. But where they can produce principles of trade-effect interplay, they cannot look at the empirical issue. It is supposed that these can respond better to very aggregate groupings of commodities and services using transfer functions to handle their areal relations.