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The Location Decision and Employment Suburbanization

Author

Listed:
  • Gershon Alperovich

    (Department of Economics and Business Administration at Bar-Ilan University, Israel)

  • Eliakim Katz

    (Department of Economics and Business Administration at Bar-Ilan University, Israel)

Abstract

The paper develops a theoretical analysis of a profit-maximizing firm's behaviour in determining output and location in order to explain the suburbanisation of employment. This is done by deriving the supply curve of a firm whose locational choice is restricted to two locations, the city centre and the suburbs. The form of this supply curve indicates that at low levels of production the city centre is optimal but above a critical level of production optimality shifts to the suburbs particularly where residential suburbanization of the labour force has also occurred.

Suggested Citation

  • Gershon Alperovich & Eliakim Katz, 1988. "The Location Decision and Employment Suburbanization," Urban Studies, Urban Studies Journal Limited, vol. 25(3), pages 243-247, June.
  • Handle: RePEc:sae:urbstu:v:25:y:1988:i:3:p:243-247
    DOI: 10.1080/00420988820080321
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    References listed on IDEAS

    as
    1. Lee, Kyu Sik, 1981. "Intra-urban location of manufacturing employment in Colombia," Journal of Urban Economics, Elsevier, vol. 9(2), pages 222-241, March.
    2. Grubb, W. Norton, 1982. "The flight to the suburbs of population and employment, 1960-1970," Journal of Urban Economics, Elsevier, vol. 11(3), pages 348-367, May.
    3. Peter Elias & Geoffrey Keogh, 1982. "Industrial Decline and Unemployment in the Inner City Areas of Great Britain: a Review of the Evidence," Urban Studies, Urban Studies Journal Limited, vol. 19(1), pages 1-15, February.
    4. Mathur, Vijay K., 1979. "Some unresolved issues in the location theory of the firm," Journal of Urban Economics, Elsevier, vol. 6(3), pages 299-318, July.
    5. William Alonso, 1967. "A Reformulation Of Classical Location Theory And Its Relation To Rent Theory," Papers in Regional Science, Wiley Blackwell, vol. 19(1), pages 23-44, January.
    Full references (including those not matched with items on IDEAS)

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