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===Summarization of the modifiable areal unit problem in regional economics. ===

The delimitation of economic data and information are influenced by the modifiable areal unit problem (MAUP), but are rarely investigated. Dusek’s paper thoroughly examines how MAUP can affect macroeconomic theories and highlights some of the potential negative effects. The spatial aggregation effect, or MAUP, is comprised of two similar but unique components: the scale effect and the zoning effect. The scale effect, refers to variation in results, while aggregating data to a larger scale and the zoning effect, refers to variation in results due to different types of analysis, while unit numbers are the same. Previous studies on MAUP have focused on effects of various descriptive statistics where the “problem is most noticeable in establishing new regional units, when it has a delimiting factor on the region’s participation in different regional development subsidies” (Dusek, 2005). Since there is a lack of basic spatial units in economics it is difficult to model theories properly, unfortunately, theory and model building have seldom been investigated. (Dusek, 2005) The main question investigated in this paper is the “areal delimitation effects on the theories and methodology of regional economics” (Dusek, 2005).

Commonly researchers have been critical of regional economics being conducted in an “imaginary spaceless world” (Dusek, 2005). The treatment of space has many different forms but the most effected by the demarcation line; ”the network of aggregated one point economies with transport costs and space built by individual basic points and individual movements” (Dusek, 2005); have more relevance to regional economics. The connection between spatially aggregated variables within models of regional economics can only be interpreted if they “have identifiable individual basic data”. Some examples of these data, but certainly not limited to, are price level and its change, total investment and unemployment. (Dusek, 2005) These data units are focused within regional economic areas, which are spatially, temporally and in behavior heterogeneous. (Dusek, 2005)

MAUP in regional economics is strongly related to the general problem of aggregation with two main approaches that are a technical and mathematical one and a fundamental one. The first approach has no use “ for some tacit assumptions” except “for some technical issues” when those “tacit assumptions are true”. (Dusek, 2005) Fundamental approaches are concerned with assuming a causal relationship between spatially aggregated data and managing the qualitative differences between basic elements. (Dusek, 2005). The three distinguishable types of differences to focus on, in addition to, spatial and temporal ones are differences in value, behavior and composition. Value is defined as “the different values of a variables in different basic elements” such as the incomes of two individuals. (Dusek, 2005). The different behavior of basic units, or differences in behavior, can be represented as the distribution of demand among different goods. The compositional difference are variables (e.g. GDP) created by weighting methods and using various auxiliary assumptions that often do not have basic units. (Dusek, 2005)

Micro level explanations of macro-phenomena are problematic in regional economic studies. These variables connect in a very complex way that needs to be understood and cannot be solved by using statistical information to derive the processes. When delineation lines are created and data generalization (creating units) are created, MAUP is prominent because regional economics does not follow artificial boundaries or lines. Furthermore, future theoretical models should and cannot be based on aggregations of model data without the careful examination of its micro level units.