ABSTRACT
Although an urban system can be broken down into subsystems, the study of its dynamics implies not only the consideration of the dynamics of each subsystem taken separately but also the dynamics of the interrelationships between these subsystems. The aim of this chapter is to derive a set of economic indicators to be associated with a specific model of urban dynamics. The model is derived from economic principles which allow us to identify and relate a consistent set of indicators to the actions of individual consumers and producers in the markets for housing, labour and services. Indeed, a distinctive feature of the model is the derivation of the transition rates (or mobility choice) from random utility theory. A prerequisite to the establishment of economic measures within a dynamic framework will be a discussion of the formation of economic surplus measures in discrete choice contexts, and particularly those models of the competitive markets which are underpinned by probabilistic choice theory.
