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Nonland Factor Markets In The Thünen Model

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  • Donald W. Jones

Abstract

ABSTRACT The operation of several nonland factors markets is made explicit in the spatial context of the Thünen model. The primary results of the Thünen model emerge but are elaborated upon in details. Land pays the full transport bill on outputs and on transported inputs, but if workers require a smaller wage payment at greater distances from market, land receives the wage bill savings. Consumption of local farm output will always decrease wages and increase rents. If interest rates rise with distance from market, farms nearer the market will be operated with purchased equipment and farther farms with rented equipment.

Suggested Citation

  • Donald W. Jones, 1984. "Nonland Factor Markets In The Thünen Model," Papers in Regional Science, Wiley Blackwell, vol. 54(1), pages 43-57, January.
    • Handle: RePEc:bla:presci:v:54:y:1984:i:1:p:43-57
    DOI: 10.1111/j.1435-5597.1984.tb00815.x
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