Land rent, production and land use

Jean-Marie Huriot
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Jean-Marie Huriot: IME - Institut de mathématiques économiques - UB - Université de Bourgogne

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Abstract: Let us consider land rent as a monetary surplus generated by a productive activity. Land is allocated to the activity which yields the highest rent, as a result of a bidding process. This principle which THÜNEN (1826) and later LÖSCH (1940) applied to agricultural location, leads to the famous theory of concentric circles which is still at the heart of present day urban structure theories. These theories concentrate on utility and demand rather than on the conditions of production. In a different approach, the aim of this paper is to generalize some aspects of the allocation of land to productive activities. For different activities, we shall define different vectors of technical coefficients, showing different degrees of intensity in the use of land, labor and capital. Then, we shall try to determine how price-, cost- and distribution parameters influence the relative locations of these activities.

Keywords: rent; production; land (search for similar items in EconPapers)
Date: 1986
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Published in [Research Report] Institut de mathématiques économiques (IME). 1986, 36 p., ref. bib. : 2 p

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