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SPATIAL PRICE EQUILIBRIUM AS A FOUNDATION TO UNIFIED SPATIAL COMMODITY MODELING
Author(s) -
Labys Walter C.,
Yang Chin W.
Publication year - 1997
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.1435-5597.1997.tb00689.x
Subject(s) - commodity , economics , econometrics , general equilibrium theory , spatial econometrics , econometric model , mathematical economics , computer science , microeconomics , market economy
Various approaches to modeling spatial commodity flows are critically examined. Starting with the linear programming transportation problem, it is found that the properties of the spatial equilibrium model tan be served as a foundation to a host of other models. The convergence of some key characteristics embedded in these models indicates that the spatial price equilibrium model is indeed an important cornerstone upon which the entropy formulations, imperfect competition and spatial econometric models are built.