W Function: A new distance-based measure of spatial distribution of economic activities

Abstract

Distance-based methods are applied in various fields of research. In this paper, a new relative distance-based method, the W function, is introduced. This method contributes to the assessment of spatial patterns of economic activities using the stochastic Monte Carlo simulation, and supplements the typology of distance-based methods recently drawn up by Marcon and Puech. The capability of the W function is compared with results from the Kd and the recently defined m function methods, which are widely used for monitoring the spatial distribution of economic activities by considering several theoretical and empirical examples. The W function appears to provide more precise estimations of the density of economic activities compared to the m and Kd functions, particularly in cases of complex patterns such as double clustered distribution. It also appears to provide a more accurate evaluation of dispersion.