Tinbergen-Bos Metricised Systems: Some Further Results

F.J. Kuiper, J.H. Kuiper and Jean Paelinck
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F.J. Kuiper: Department of Theoretical Spatial Economics, Erasmus University Rotterdam, Postbus 1738, 3000 DR Rotterdam, The Netherlands
J.H. Kuiper: Department of Theoretical Spatial Economics, Erasmus University Rotterdam, Postbus 1738, 3000 DR Rotterdam, The Netherlands

Urban Studies, 1993, vol. 30, issue 10, 1745-1761

Abstract: The paper describes a spatial economic equilibrium in which each market shows an equilibrium and the location of all producers is determined in an optimal way. Being a very general model, in order to solve it a number of hypotheses had to be introduced. We used the hypothesis of Tinbergen and Bos. The system is optimised in such a way that total transport costs are minimised. Many optimal solutions are shown for different numbers of firms per sector. It appears that the optimal location for a sector having a very limited number of firms, would be the centre of the region; if the number of firms increases, optimal locations will be found in a circle around the centre. The impact of economic variables—such as the propensity to consume-on the optimal location pattern of all firms, is also demonstrated.

Date: 1993
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Persistent link: https://EconPapers.repec.org/RePEc:sae:urbstu:v:30:y:1993:i:10:p:1745-1761

DOI: 10.1080/00420989320081701

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