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The Theory of Spatial Equilibrium and Optimal Location in Agriculture: A Survey

Author

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  • Weinschenck, G.
  • Henrichsmeyer, Wilhelm
  • Aldinger, F.

Abstract

In this article the development and present state of the field of spatial equilibrium theory and analysis is reviewed, particularly with respect to its application to the location of agricultural production. After surveying the historical aspects of location theory and the relationships between classical and modern theory, three major model forms are developed in some detail, viz., standard equilibrium models using supply and demand relations, activity analysis models using production functions, factor endowments and demand relations, and dynamic (recursive) models incorporating behavioral restrictions into the standard programming form. Next the study of the location of agricultural processing industry is surveyed, and finally problems of practical application, including aggregation problems and questions of data availability, are reviewed.

Suggested Citation

  • Weinschenck, G. & Henrichsmeyer, Wilhelm & Aldinger, F., 1969. "The Theory of Spatial Equilibrium and Optimal Location in Agriculture: A Survey," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 37(01), pages 1-68, March.
    • Handle: RePEc:ags:remaae:9121
    DOI: 10.22004/ag.econ.9121
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    Citations

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    Cited by:

    1. M T Lucas & D Chhajed, 2004. "Applications of location analysis in agriculture: a survey," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(6), pages 561-578, June.
    2. Helmberger, Peter G. & Campbell, Gerald R. & Dobson, William D., 1981. "PART IV. Organization and Performance of Agricultural Markets," AAEA Monographs, Agricultural and Applied Economics Association, number 337229, january.
    3. A Kellerman, 1989. "Agricultural Location Theory, 2: Relaxation of Assumptions and Applications," Environment and Planning A, , vol. 21(11), pages 1427-1446, November.
    4. A Kellerman, 1989. "Agricultural Location Theory 1: Basic Models," Environment and Planning A, , vol. 21(10), pages 1381-1396, October.
    5. Cassidy, P.A. & Kilminster, J.C., 1974. "Spatial Equilibrium Analysis, Social Welfare and Rural Policy: The Case of the Wool Marketing Innovations and Reforms," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 42(03), pages 1-17, September.
    6. King, Richard A. & Gunn, John, 1981. "Reactive Programming User Manual: A Market Simulating Spatial Equilibrium Algorithm," Department of Economics and Business - Archive 259740, North Carolina State University, Department of Economics.
    7. McCarthy, W.O. & Ferguson, D.C. & Cassidy, P.A., 1971. "Sensitivity of Plant Location Solutions to Changes in Raw Product Supplies," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(03), pages 1-7, September.

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    Keywords

    Production Economics;

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