Premium
NONLAND FACTOR MARKETS IN THE THÜNEN MODEL
Author(s) -
Jones Donald W.
Publication year - 1984
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/j.1435-5597.1984.tb00815.x
Subject(s) - economic rent , wage , consumption (sociology) , context (archaeology) , wage rate , payment , economics , business , labour economics , agricultural economics , microeconomics , geography , finance , social science , archaeology , sociology
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.