Constructal Theory: a new approach to spatial economics and finance

Abstract

This paper illustrates an application of Constructal Theory to spatial economics and Þnance. Constructal theory is about the generation of architecture in ßow systems in general. Simply stated, the constructal law proclaims a tendency to maximize ßow access in time, i.e., for a Þnite-size ßow system to persist in time (to live), it must evolve in such a way that it provides easier access to the currents that ßow through it. Constructal optimization in spatial economics is possible since the business world is moved by some fundamental goals, namely the maximization of proÞts, the minimization of costs, the minimization of time spent in some assignment, the maximization of returns (constructal purpose) and faces a background of constraints that can be quantitatively deÞned. The similarities between the spatial structures of physical and economic ßows spring out of the same deterministic principle [Bejan et al. (2000); Reis (2006)].