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LOCATION, THEORY OF PRODUCTION, AND VARIABLE TRANSPORTATION RATES *
Author(s) -
Ziegler Joseph A.
Publication year - 1986
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/j.1467-9787.1986.tb01075.x
Subject(s) - independence (probability theory) , production (economics) , context (archaeology) , econometrics , economics , variable (mathematics) , production theory , constant (computer programming) , space (punctuation) , elasticity (physics) , microeconomics , mathematics , statistics , computer science , geography , physics , programming language , operating system , thermodynamics , mathematical analysis , archaeology
. The question of what conditions insure independence between location and output decisions is investigated within the context of triangle space. Assuming that transportation rates vary with quantity and distance, it is shown that this independence is insured if the production function generates a linear expansion path and the following are all constant: transportation rate elasticities with respect to distance and quantity, and the price elasticity of demand for inputs.