An Exploration of Path Dependency and Spatial Outcomes: Exploring path dependency theory and the urban pattern that has emerged in Sydney in the Post WWII period

Abstract

Investigation of path dependency theory is tempting as it may present answers to why apparently incongruous decisions that lead to inefficient outcomes are made. It may present opportunities to theorise, from an economic history perspective, as to why these decisions are made, and why the results of actions can have durability, even if outcomes appear to be inefficient. From a spatial perspective, decisions relating to the location of firms and households, as well as wider considerations of urbanisation, might be subject to path dependent outcomes and may warrant investigation. ... This study proposes to explore path dependency theory and its role in influencing spatial outcomes. In do so path dependence theory may been seen to provide an explanatory tool for locational decision making and land use choices for firm and households. A number of other economic location theories have been developed, and comparison with them should be made to determine whether path dependency is simply a duplicate of ,in earlier theory, or whether it will indeed add something new to locational analysis. The three main economic location theories to be examined and compared as part of this study are the neo-classical, behavioural and structuralist approaches.