26 Potential Models in Geography
26 Potential Models in Geography
D .C. Rich
CATMOG has been created to fill a teaching need in the field of quantitative CONCEPTS AND TECHNIQUES IN MODERN GEOGRAPHY No. 26
methods in undergraduate geography courses. These texts are admirable guides
for the teachers, yet cheap enough for student purchase as the basis of
classwork. Each book is written by an author currently working with the POTENTIAL MODELS IN HUMAN GEOGRAPHY
technique or concept he describes.
by
1. An introduction to Markov chain analysis - L. Collins D. C. Rich
2. Distance decay in spatial interactions - P.J. Taylor (Macquarie University, Australia)
3. Understanding canonical correlation analysis - D. Clark
4. Some theoretical and applied aspects of spatial interaction
shopping models - S. Openshaw CONTENTS
5. An introduction to trend surface analysis - D. Unwin Page
6. Classification in geography - R.J. Johnston I INTRODUCTION 3
7. An introduction to factor analytical techniques - J.B. Goddard & A.Kirby
II SOCIAL PHYSICS
8. Principal components analysis - S. Daultrey
(i) Background 4
9. Causal inferences from dichotomous variables - N. Davidson
(ii) Gravity 6
10. Introduction to the use of logit models in geography - N. Wrigley
(iii) Potential 7
11. Linear programming: elementary geographical applications of the
transportation problem - A. Hay III LINES OF DEVELOPMENT
12. An introduction to quadrat analysis - R.W. Thomas (i) Population and income potentials 8
13. An introduction to time-geography - N.J. Thrift (ii) Market potential and its derivatives 11
14. An introduction to graph theoretical methods in geography - K.J. Tinkler
IV OPERATIONALISATION
15. Linear regression in geography - R. Ferguson
(i) A simple example 13
16. Probability surface mapping. An introduction with examples and
Fortran programs - N. Wrigley (ii) The universe 16
17. Sampling methods for geographical research - C. Dixon & B. Leach (iii) The zones 17
18. Questionnaires and interviews in geographical research - (iv) Mass 17
C. Dixon & B. Leach (v) Distance 18
19. Analysis of frequency distributions - V. Gardiner & G. Gardiner
V CASE STUDY 1 - NEWS CIRCULATION IN THE UNITED STATES 22
20. Analysis of covariance and comparison of regression lines - J. Silk
21. An introduction to the use of simultaneous-equation regression VI CASE STUDY 2 - MANUFACTURING INDUSTRY IN SCOTLAND 27
analysis in geography - D. Todd
VII PROBLEMS AND PROSPECTS
22. Transfer function modelling: relationship between time series
variables - Pong-wai Lai (i) Outstanding problems 32
23. Stochastic processes in one-dimensional series: an introduction - (ii) Some recent advances 33
K.S. Richards
BIBLIOGRAPHY 35
24. Linear programming: the Simplex method with geographical applications -
J.E. Killen
continued on inside back cover
Acknowledgement
I INTRODUCTION
I would like to thank Peter Matwijiw and two referees for their
comments on a previous draft of this monograph. The potential model has appeared frequently in the human geography
literature as an index of the intensity of possible interaction between
Figure 1 is reprinted in adapted form from Geographical Review, Volume social or economic groups at different locations. This potential interaction
37, 1947, with the permission of the American Geographical Society. may be of goods, telephone calls and other forms of telecommunications,
migration, and a whole range of other social and economic contacts. If we
Figures 5,6 and 7 are reprinted in adapted form from A.R.Pred's examine the situation within a city, we could add to this list many other
City systems in advanced economies, with the permission of the author types of interaction, such as journeys to work, shop, school or entertain-
and the publishers, Hutchinson of London and John Wiley of New York. ment. This concern with 'potential for interaction' is quite distinct from
and should not be confused with 'potential for the future' in the sense of
capacity for change.
The basic notion is, then, one of flows - of goods and services, of
ideas and information, and of people. With this emphasis, the potential
model has close conceptual, empirical and historical associations with the
gravity model. Whereas the gravity model is concerned with analysing or pre-
dicting an observed pattern of spatial flows, the potential model is more
concerned with the opportunity for interaction between groups, created by
their sizes and locations, than with the interaction itself. The links be-
tween the two models are explored in more detail in section II.
3
calls for a more 'scientific' approach to the subject. For example, Stewart
and Warntz (1958A) saw the status and progress of geographical research as (1)
being reduced by its concentration until that time on 'microscopic' studies
of individual areas; they proposed an alternative 'macroscopic' methodology
involving not the collection of more case studies nor the examination of where
larger areas, but rather a heightened level of abstraction and generalisation
as a means of securing greater understanding of the processes operating to
determine spatial relationships. They saw distance, time and numbers of
people as being basic elements or dimensions of socio-economic systems, just
as the physical sciences had long recognised a number of fundamental dimen-
sions. They argued that a thorough appreciation of these basic factors is
Both gravity and potential models are based on two broad notions related
essential for an understanding of the workings of human society, and they put
to the D and M terms in this equation. The first is that the probable fre-
a lot of effort into trying to derive theoretical or empirical generalisations
quency of interaction between people in different cities is inversely pro-
about the spatial structure of societies using these dimensions. They further
portional to the difficulty of movement between them. This difficulty is the
argued that the progress of the macroscopic approach had hitherto been im-
result of a 'frictional' effect and is directly proportional to the interven-
peded by the absence of a sufficiently abstract and subtle measure of geo-
ing geographical distance between the two cities. The frictional effect is
graphical position; the potential model was proposed as such a measure and
the product of many factors, such as transport costs (whether for people or
consequently as a cornerstone of a new 'macrogeography'. It is rarely
goods), travel time, the availability of information in one place about the
accorded such a central position in geographical research today, but it is
contact opportunities existing in the other, and the probability of making
still frequently used in its descriptive and explanatory roles. This mono-
chance contacts. The frictional effect serves to inhibit contacts and means
graph concentrates on the latter two functions, and an example of each type
that spatial interaction commonly exhibits a distance decay pattern, with a
of application is discussed in sections V and VI.
high volume of contacts over short distances but progressively fewer over
longer distances.
The text is as far as possible self-contained. However, the discussion
assumes a basic knowledge of simple statistical methods, particularly cor-
The second notion is that any person in a city may be considered to
relation and regression analysis. A background knowledge of the gravity model
generate the same interaction as any other. Consequently, the volume of
is also useful but not essential; an excellent introduction is provided by
Taylor (1975) in this CATMOG series.
4 5
Man, the molecule of society, is the subject area. However, the equations for demographic force and energy differ only
of Social Science .... The great law of in the exponent to which distance is raised; later social scientists have
Molecular Gravitation is the indispensable not felt constrained by the exponent of 1 suggested by the physical analogy.
condition of the existence of the being Equations (3) and (5) have been combined and generalised into a single equa-
known as man .... the greater the number tion representing the interaction, I, between i and j:
collected in a given space, the greater is
the attractive force that is there exerted... (6)
Gravitation is here, as everywhere, in the
direct ratio of the mass and the inverse
one of distance. where b is an exponent to be derived empirically. This equation is the basic
gravity model used in the social sciences, which is the focus of Taylor's
(Carrothers, 1956). This is fundamentally the same formulation as that monograph in this series (Taylor, 1975) and is therefore not further dealt
given in equation (1). with here.
The gravity concept made only sporadic reappearances in the social Lagrange added the notion of gravitational potential to Newton's concepts
science literature during the 80 years after Carey wrote. Our modern interest of force and energy. Whereas equation (4) represents the mutual energy
in the gravity and potential models stems from the early 1940s when J.Q. created between masses i and j, gravitational potential represents the energy
Stewart, an astronomer at Princeton University, generalised previous work on created at one mass by another. For example, the energy created by j at i
human interaction and formalised it in terms of Newton's planetary gravita-
tional theory. His interest was raised by an observation that students at
Princeton came predominantly from the local region, with progressively fewer
coming from successively further away (Stewart, 1941, 1942).
This observation led him (Stewart, 1948) to explore the analogy with
Newton's theory. Newton's original statement suggested that there is a
gravitational force, F, between two particles of mass, mi and m 1 , at a dis-
6 7
But most commonly, it is regarded as an indicator of relative position, or
accessibility. Thus, equation (10) gives a measure of the accessibility of
people in i to the people in all parts of the area being examined.
8 9
have higher potentials than urban areas in the Mid West because of the low One interesting extension of this work involved attempts by Warntz
base potentials on which such cities stand. Consequently, as Stewart (1957, 1959) and by Tegsjo and Oberg (1966) to use potential to explain the
(1948, p 39) points out: you are closer to people of the whole United States formation of prices of agricultural commodities, such as wheat, potatoes,
on a farm in Hunterdon County, New Jersey, than you are at the center of onions, strawberries and eggs, in the U.S.A. and Sweden. The aim was to
Omaha, Nebraska'. extend the simple notion that price is a function of supply and demand, by
suggesting that geographical variations in prices are direct functions of
Another early concern was with the relationship between population spatial variations in demand and inverse functions of spatial and temporal
potential and population density. If for the moment we regard people as being variations in supply. Accessibility of any point to national demand was re-
continuously distributed over an area instead of being gathered into discrete presented by income potential, while geographical variations in supply were
zones. potential is given by: measured by another variant of potential where the volume of local production
of the commodity under investigation formed the mass term. Temporal vari-
(11) ations in supply were represented by 'supply time potentials', a similar
notion to geographical potentials except that distance is measured in days,
where S is the population density in an infinitesimal element of the area, weeks or months since the last harvest of the product. The three potentials
dR. This formulation is of little practical value, because to quantify it were used as independent variables and in regression analyses were quite
requires knowledge of the precise location of each individual, but it does successful in statistically explaining prices. For example, in the case of
illustrate that potential is a sort of smoothed out density' (Stewart, wheat, Warntz (1959) formed the following regression equation:
1942, p 71), where the smoothing takes place in accordance with an inverse
distance formula. Population potential is therefore a weighted sum of the
population densities of the surrounding areas (Craig, 1972). The two concepts
are, however, complementary and not identical. Whereas density relates to an
area, potential has point significance and this is reflected in the fact that
(when a distance exponent of 1 is used) potential is measured in units of
people per kilometre (or, more generally, mass per unit of distance), whereas
density is measured in the more familiar notion of people per square kilo-
metre. Potential is a scalar quantity; that is, it has no direction in space.
Zone Relative
Potential (%)
1 56.46
2 100.00
3 89.30
4 97.95
5 74.40
6 67.84
For this reason, some authors have experimented with a variety of alter-
natives such as the distance along major transport routes. Carrothers (1958),
for example, used railway distance, and Anderson (1956) suggested that it
might be useful to take account of differences in the predominant mode of
travel for particular types of interaction along particular routes. Many
others have tried to get away from using such purely physical notions of dis-
A second possibility is to replace population with another variable that tance and have turned to measures of economic or social separation, such as
appears to give a good measure of local contact opportunities. For example, travel time or cost. A study of access to job opportunities in Atlanta
in his study of the market orientation of U.S. manufacturing, Harris (1954) (Bederman and Adams, 1974) used the average travel time between home and work
used the value of retail sales to represent the size of the market. Similarly, zones. Harris (1954) used a measure of the costs of transporting goods,
Pred (1973, 1977) used the number of newspaper editions published locally each while a similar study in Western Europe (Clark et al, 1969) used a more com-
week in his study of the availability and circulation of information in pre- plex cost index incorporating terminal charges, movement costs and (where
telegraphic America; this study is examined in more detail in section V. appropriate) international tariffs.
A third approach, suggested by Anderson (1956) and others, is to raise
the weighted or unweighted mass term to some exponent, a. Potential is then
given by:
(15)
Recently, the emphasis has been on simplicity in defining the mass term Dii can be defined in a number of ways, though all are somewhat arbitrary.
and many studies have used a single variable, such as zonal population, em- Applications of potential using transport cost rather than physical distance
ployment or income, thought to give a reasonable indication of interaction- generally avoid the problem by using an estimate of intrazonal transport cost
generating capacity. There is generally less debate than in the past over or by adding a significant terminal charge to all costs. Anderson (1956)
which mass term to use since most of the readily available possibilities tend tackled the problem by adding a constant to all distances, to avoid Dii values
to be quite closely correlated and the choice among them has relatively of zero; both Ray (1965) and Houston (1969) used an arbitrary fixed value to
little impact on the resulting potential surfaces (Houston, 1969). For many represent the average distance over which intrazonal contacts occur. The
people, the distance term is more important and more interesting. latter approach, though convenient, is difficult to justify because it takes
no account of variations in the geographical sizes of the zones (which may be
(v) Distance considerable if administrative units are being used). A preferable method,
developed by Stewart (1947), uses the result that the self-potential of a
The distance term represents the effects of the geographical separation uniform circular disc at its centre is equal to the mass divided by half the
of different masses in impeding the interaction between them. The simplest radius: the self-potential distance is taken to be half the radius of a circle
measure to use is the straight line distance between the centroids of each of the same area as the zone concerned. Although this approach allows for
zone, which can be easily found using Pythagoras's theorem. When potentials variations in the size of zones, it does not allow for differences in their
are to be computed over large areas such as continents, the 'great circle' shape or in the distribution of the mass within them. Departures from cir-
cularity probably have a relatively minor impact onself-potential in most
18
19
cases (Stewart and Warntz, 1958B), but the distribution of the mass may be
more important. For example, the self-potential created by a uniformly dis-
tributed mass over a circle is only two-thirds that imposed by either a
conical or a Gaussian distribution and less than half that imposed by a neg-
ative exponential distribution around the centroid (King, 1969, pp 96-97):
the more concentrated the mass around the zone's centroid, the greater is
the self-potential created. A partial solution to this might be to modify
Stewart's approach by taking D ii to be some fraction, less than half, of the
zone's radius, to allow for the likely peaking of the mass around the centroid.
However, at present there is no clear consensus on which definition of Dii
is most appropriate.
The value of the exponent has a significant impact on the nature of the
potential surface. This is illustrated in Figure 4, which shows potential
surfaces for Great Britain with exponents of 1.0 and 2.0. The lower value
is associated with interaction that is little constrained by distance so that
effective geographical variations in accessibility are relatively small;
correspondingly, the potential surface is relatively flat, without major
local variations in scores. Conversely, the larger exponent, indicating that
distance is a major impediment to interaction, means that geographical vari-
ations in potential are substantial; the potential surface is strongly peaked
around major population concentrations and more distant areas, by contrast,
are seen to have a very low capacity to interact.
There remains the issue of how to select the distance exponent. Possible
approaches are to choose a value arbitrarily or to duplicate a value used in
another study. A more satisfactory method is to examine suitable interaction
data, to fit a gravity model to them using a regression method described by
Taylor (1975) and so derive an exponent empirically. Ray (1965) used this
approach in his study of manufacturing in Ontario by regressing the tonnage
20 21
Pred constructed such information accessibility maps for 1790, 1820
and 1840 (Figures 5, 6 and 7). Potential values were computed for all coun-
of commodity flows on distance; he obtained a value of 1.42, although various ties having newspapers, with the mass term being represented by the number
technical and conceptual problems led Houston (1969) to question this result. of editions appearing weekly. Intercounty distances were measured between
A more pragmatic approach is to use a trial and error procedure to find the the population centroid of each county in 1960 (on the argument that any
'best' exponent in particular circumstances. When the potential surface is small shift in the population centre of gravity in the intervening period
being constructed to act as an explanatory variable in regression analysis, would have only a very slight effect on potential scores). Self-potential
'best' may be defined as the surface providing the largest statistical fit distance was derived by taking the mean of the particular county's two
to the dependent variable; this is the method used in the study described longest perpendicular axes; this had the effect of undervaluing the self-
in section VI. This method indicates that there is no universally optimum potential, and hence the total potential, of those counties, such as New
exponent, although values much over 3.0 are rarely appropriate, and that York and Philadelphia, where there was a significant level of purely local
quite small changes in the exponent may have quite a substantial impact on exchange of news. The distance exponent was set to unity throughout. For
relative potentials and consequently on the statistical explanation achieved. ease of comparison, all potentials for 1790, 1820 and 1840 were converted to
a single base, with New York's value in 1790 being set at 100.
22
Fig. 5 Public-information accessibility in the United States, 1790
(after Pred, 1977) Fig. 6 Public-information accessibility in the United States, 1820
(after Pred, 1977)
24
25
VI CASE STUDY 2 - MANUFACTURING INDUSTRY IN SCOTLAND
The second example, illustrating the use of potential as an explanatory
variable in statistical analysis, is a study of the geographical patterns of
growth and decline in manufacturing employment in Scotland between 1961 and
1971. The work is part of an examination of the processes leading to the
existence of the 'regional problem' in Britain. Two main research hypotheses
were tested:
The idea behind the first hypothesis is that accessible areas are
attractive to new industries and provide favourable environments for the
expansion of existing activities, and that consequently they tend to have
good records of employment growth compared with other areas. The possible
advantages of centrality are many (Keeble, 1976, pp 46-71), but they may be
conceived as resulting from the fact that the concentration of economic
activities there provides manufacturing with a wide range of interaction
opportunities. In general, firms seek locations offering a large volume of
high quality potential contacts at a low cost, and because central areas
offer this they have competitive advantages over remote regions. These ad-
vantages involve input and output links of all kinds; not only forward links
with customers, but also backward links with sources of raw materials, com-
ponents, labour, capital, information and more general urbanisation economies
may be important.
The links influencing locational decisions will vary, but both inter-
and intraregional contacts are likely to be relevant, so accessibility-seeking
behaviour might occur at either scale in conditions approximating a free-
market economy. However, British regional policy has long operated to offset
the advantages of locating in the country's economic core, running from
south-east to north-west England; consequently, accessibility-seeking be-
haviour might be more evident within regions, where public intervention might
possibly have had less effect on broad patterns of location. This was one
reason for testing the two hypotheses at the intraregional scale.
Regression analysis was used to test the two hypotheses. The dependent
variables examined were the employment changes (in jobs per 100 km 2 ) between
1961 and 1971 in manufacturing as a whole and in the 14 manufacturing orders
(using the 1958 version of the Standard Industrial Classification). The
independent variable was economic potential, scaled so that the highest value
in Great Britain was 100.0. Great Britain was used as the universe over
which potentials were calculated, although only the Scottish scores were used Fig. 8 Possible relationships between employment change and potential
in the regression analysis, because it was felt that links both within Scot-
land and with other regions might influence industrial location patterns in declining industries. Six of the seven with expanding employment follow
Scotland. A variable exponent version of potential was used to represent as the quadratic pattern suggested by hypothesis 2, while the contracting in-
accurately as possible the contact-impeding effects of distance in different dustries exhibited much more varied patterns of change. Not one of the 14
circumstances; the value of the exponent, b, was selected by trial and error industries supports the first hypothesis, although two have an inverse
to maximise the statistical fit of the regression model to each dependent linear pattern of change, with their worst employment records in central
variable. Two of the potential surfaces are shown in Figure 4. areas.
The regression functions suggested by the two hypotheses are sketched The details of the results, and their implications for regional develop-
in Figure 8. Hypothesis 1 implies that the greatest employment growth is ment, are not important here, but the analysis is consistent with the notion
in the most accessible regions of Scotland, namely around the Clydeside that, in growing industries, there is some sort of trade-off between centri-
conurbation (see Figure 4). Hypothesis 2 suggests that the peak employment fugal and centripetal locational pressures. However, the same geographical
growth rates are found in near-central areas, such as the old counties of patterns could conceivably be produced by other processes. Geographical
Ayrshire, the Lothians, Fife and Stirlingshire. variations in the balance between nationally expanding and declining
activities, and the spatially varying effects of regional policy are the
The actual pattern of employment change in manufacturing as a whole two most obvious candidates; a closer examination indicates that although
(Figure 9) does bear some resemblance to that suggested by hypothesis 2: they do reinforce the growth of near-central areas, even when this is allowed
the major employment losses were around Clydeside and the largest increases for there is still a clear quadratic relationship between potential and
were in East and West Lothian, Ayrshire and Fife. On the other hand, a num- employment change. This strongly suggests that the maximisation of contact
ber of areas performed better (e.g. Aberdeenshire) or worse (e.g. Midlothian) opportunities and the minimisation of congestion costs are, in combination,
than suggested. Regression analysis of these data provides little support important factors in moulding industrial change in growing activities and
for the linear hypothesis but shows that the quadratic model is of the form that economic potential can be used as a reasonable surrogate for the relative
hypothesised and provides a reasonable fit to the data. The quadratic re- attractiveness of different areas on these criteria. On the other hand,
gression equation is: the very different geographical patterns of change in industries with de-
clining employment suggests that although these industries may be influenced
by contact and congestion factors, other mechanisms are also important.
28 29
Fig. 9 Manufacturing employment density changes in Scotland, 1961-1971
30 31
statistical goodness of fit between potential and another spatially dis-
tributed phenomenon, and again means that conventional tests are inappropriate.
One alternative approach, used in the Scottish study, is to test whether
synthetic, spatially random data would be likely to have as strong a relation-
VII PROBLEMS AND PROSPECTS ship with potential as that observed between potential and the dependent
variable; if not, then one might be reasonably safe in suggesting some sort
(i) Outstanding problems of structuring in the dependent variable of the type hypothesised. However,
at present there is no consensus on how to deal with this difficulty and it
Potential models have been widely and often successfully used, but is probably best to regard it as an unresolved problem.
there are problems to be faced in their application. A number of technical
decisions, outlined in section IV, have to be made during their construction. (ii) Some recent advances
Some authors (e.g. Lukermann and Porter, 1960; Houston, 1969) have cited
the difficulty of making these, and the semi-arbitrary nature of some of the There is continuing interest in potential models and new applications
decisions, as grounds for avoiding potential models if at all possible. appear fairly frequently. For example, potentials have recently been con-
However, these construction problems need not prevent potential models from structed to indicate the geographical distributions of scientists around the
making a useful contribution to geographical studies if they are used sen- world (Inhaber, 1975), physicians in Seattle (Schultz, 1975), dentists in
sibly and carefully. But there are two other, perhaps more important, areas Newcastle-upon-Tyne (Bradley et al., 1978) and ethnic groups in Winnipeg
of difficulty. (Matwijiw, 1979). Perhaps more interesting than these new applications of
old models are attempts to refine the concepts and methods involved.
The first is that by their very nature, potential models are used in
the course of macro-level geographical work and suffer from the problems of In the income potential field, the power relationships between potential
all macro-analytical techniques. Simply, potential models deal with aggre- and density and between potential and per capita income have been reinter-
gates - of people, firms and the like - and consider average patterns: they preted in entropy terms by Fein (1970), Warntz (1973) and others. This has
have no direct behavioural input and tell us nothing about any one individual. stimulated renewed research. In particular, the social and economic processes
Further, potential does not represent any single process, but is a fairly underlying the spatial structure of the city have been explored by focussing
crude surrogate for a whole range of spatially varying phenomena. Con- on the varying 'integration' of different groups, that is their potential to
sequently, it is often difficult to infer, and ultimately impossible to interact with people and activities located elsewhere within the city.
'prove', the processes influencing individuals and producing observed aggre- Boston, Toronto and Sydney have all been examined in this fashion (Coffey,
gate patterns. For example, in the Scottish study just outlined, it is 1977, 1978; Coffey and Matwijiw, 1979). The interpretation of the power re-
possible to say that patterns of industrial change are consistent with an lationship, and especially its exponent, are still subject to debate but it
hypothesis about the factors influencing individual firms and to discount does seem likely that further investigation might lead to new insights about
other factors that might conceivably have produced similar patterns of change, the processes moulding the structure of cities, and particularly the social
but using potential as an explanatory variable it is not possible to go much and geographical distribution of income within them (Coffey, 1978).
further. Thus, the use of the potential model is not a substitute for de-
tailed micro-level analysis of individual cases. Rather, the two approaches The application of potential in industrial geography is continually
are complementary: while any use of potential must be firmly based on the being refined. Richardson's interesting proposal of an agglomeration poten-
results of relevant previous research, it is often useful in generating or tial model has already been mentioned. Tybout and Mattila (1977) have used
i mproving hypotheses that can later be further tested by other methods. a somewhat similar but slightly more simple approach to investigate the
intrametropolitan location of 11 manufacturing industries in Detroit. They
The second problem area relates to the use of potential models in used multiple regression analysis to examine the distribution of employment
statistical hypothesis testing, especially their use as explanatory variables in the industries in terms of a number of explanatory variables, including
in regression analysis. Difficulties here mean that the conventional tests agglomeration economies, potential supply of inputs and potential demand for
in inferential statistics are probably not appropriate. One aspect of the outputs for each firm. Each of these three explanatory variables was quant-
problem is that the so-called independent and dependent variables may not, ified using potential; the mass terms of the latter two were weighted by the
in fact, be independent of one another. For example, because of the func- relevant transaction coefficients of the U.S. national input-output table
tional relationship between density and potential, some correlation is to be to take account of the relative importance to an industry of links with each
expected for any distribution of population potential and population density, particular type of activity. The use of input-output data to disaggregate
so that the suggestion from t or F tests that the correlation is 'significant' the interaction between a firm and its environment in this way is an interest-
may be entirely spurious. Testing procedures generally need to be much more ing line of research and promises to add considerably to the value of poten-
conservative in this situation. tial models in industrial location studies.
A different aspect of the same problem is that conventional inferential By way of conclusion, it is useful to point out that planners have also
tests require random, independent samples (Gould, 1970), a requirement that made a number of uses of potential models. Hansen (1959) developed a version
runs counter to many geographical hypotheses. Potential is a highly spatially of potential to examine opportunities for residential growth.
autocorrelated phenomenon: potential scores of neighbouring areas are, by
definition, not independent of one another. This will tend to inflate the
33
32
His model differed from simple population potential in that:
a) unlike population potential, it is used to predict likely population
growth;
BIBLIOGRAPHY
b) it includes a measure of the inherent attractiveness or physical Abumere, S.I. (1978), 'Multinationals, location theory and regional develop-
capacity of each zone; and ment : case study of Bendel State of Nigeria'. Regional Studies,
12, 651-664.
c) whereas population potential measures the mutual accessibility of
groups of people, Hansen's model represents the accessibility of resi- Anderson, T.R. (1956), 'Potential models and the spatial distribution of
dential areas to places of work, on the argument that work-place and population'. Papers and Proceedings, Regional Science
journey to work are major influences on the location of residential Association, 2, 175-182.
development (Smith, 1974).
Anscombe, F.J. (1960), 'Rejection of outliers'. Technometrics, 2, 123-145.
As an initial stage, Hansen argued that the likely residential development,Q, Bederman, S.H. and Adams, J.S. (1974), 'Job accessibility and under-
of zone i is proportional to the proximity of the zone to employment, M,
employment'. Annals, Association of American Geographers,
and to the inherent attractiveness, or 'holding capacity', H, of the zone.
64, 378-386.
In other words, potential scores are weighted by a measure of zonal attrac-
tiveness. Blair, J. (1976), 'Industrial polarization and the location of new manu-
facturing firms : an empirical application'. Regional Science
(18) Research Institute, Discussion Paper Series, No. 89.
or
Bradley, J.E., Kirby, A.M. and Taylor, P.J. (1978), 'Distance decay and
(19) dental decay : a study of dental health among primary school
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The development potential of i is then expressed as a proportion of the Carey, H.C. (1858-9), Principles of social science. (Philadelphia :
total development potential of all residential zones and multiplied by the Lippincott).
total residential population, N, in the particular universe, so that: Carrothers, G.A.P. (1956), An historical review of the gravity and poten-
tial concepts of human interaction'. Journal American Institute
of Planners, 22, 94-102.
Carrothers, G.A.P. (1958), 'Population projection by means of income poten-
tial models'. Papers and Proceedings, Regional Science
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Hansen's model has been used frequently, particularly as the residential
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