This paper presents a spatial microsimulation modelling approach to the estimation of small area income distributions in two historic cities located in the island countries of Britain and Japan. In particular, it revisits relevant past research comparing the social geography of Edinburgh and Kyoto. First, the paper provides a brief overview of social and spatial inequalities in Britain and Japan and revisits recent debates according to which Japan is the most equitable society in terms of income compared with other industrialised countries and in particular compared with Britain. This is followed by a discussion of two spatial microsimulation models that were developed and used for the estimation of small area income distributions in Edinburgh and Kyoto. The paper discusses the data and modelling approaches underpinning the two models and argues that spatial microsimulation outputs can be used to paint a better picture of the social and economic geography in the two cities and to also provide an excellent basis for further analysis.

JEL Classification: R, R2, C0, C6, C8