A simple model of the choice of transport mode and plant location | Zendy

Hong Hwang | Zendy; ChaoCheng Mai | Zendy

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A simple model of the choice of transport mode and plant location

Author(s) -

Hong Hwang,

ChaoCheng Mai

Publication year - 1990

Publication title -

the annals of regional science

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.722

H-Index - 62

eISSN - 1432-0592

pISSN - 0570-1864

DOI - 10.1007/bf01581849

Subject(s) - profit (economics) , mode (computer interface) , microeconomics , economics , function (biology) , simple (philosophy) , mode choice , computer science , production (economics) , welfare , transport system , industrial organization , econometrics , operations research , mathematical optimization , transport engineering , engineering , mathematics , public transport , market economy , philosophy , epistemology , evolutionary biology , biology , operating system

This paper tries to ascertain whether or not the profit-maximizing transport mode will be different from the welfare-maximizing one, and investigates the impact of endogenizing the choice of transport mode on the choice of location and input usage. It is shown that the results derived are critically dependent on the characteristics of the chosen production function as well as the specification of the transport cost structure. The model is particularly relevant in countries such as Taiwan, where transport regulation can play a crucial role in determining the location and output of certain industries.

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