The location of governmental facilities and equilibrium urban configuration

Shin-Kun Peng ()

The Annals of Regional Science, 1996, vol. 30, issue 3, 247-272

Abstract: Most existing models of spatial agglomeration economics do not include the effects of the governmental sector in an urban configuration, although the governmental sector plays an important role in economic activity. We discuss how an exogenous distribution of locations of governmental facilities and the level of service provided affect the equilibrium urban configuration under the assumption that governmental service is necessary component for production of goods by a firm. The model yields multiple equilibrium urban configurations endogenously, depending on the set of parameters, and that the governmental sector is responsible for the movement of equilibrium market land rents stemming from its determination of location.

Date: 1996
Note: Received: March 1993 / Accepted in revised form: July 1995
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