Lecture_4 - NR Econ Lecture 4 Topics today 1 Module II Land...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
NR Econ Lecture 4. Topics today: 1. Module II: Land Use Model 2: Location and Land Use Ideas: -- homogeneous land quality with variation in location -- von Thunen rent: an economic rent earned by spatial variation or location of a
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Johann von Thünen ( 1783 - 1850 ) His treatise, The Isolated State (1826), developed the first serious treatment of spatial economics, connecting it with the theory of rent. Von Thünen developed the basics of the theory in a mathematically rigorous way, summarizing it as: R=Y(p-c)-YFm , where R=land rent; Y=yield per unit of land; c=production expenses per unit of land; p=market price per unit of commodity; F=freight rate; m=distance to market.
Background image of page 2
Thünen's model: -- the black dot represents a city; 1 (white) dairy and market gardening; 2 (green) forest for fuel; 3 (yellow) grains and field crops; 4 (red) ranching; -- the outer, dark green area represents wilderness where agriculture is not profitable
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
A Simple Model of Location and Land Use New elements
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 19

Lecture_4 - NR Econ Lecture 4 Topics today 1 Module II Land...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online