The Theory of Spatial Equilibrium and Optimal Location in Agriculture: A Survey

In this article the development and present state of the field of spatial equilibrium theory and analysis is reviewed, particularly with respect to its application to the location of agricultural production. After surveying the historical aspects of location theory and the relationships between classical and modern theory, three major model forms are developed in some detail, viz., standard equilibrium models using supply and demand relations, activity analysis models using production functions, factor endowments and demand relations, and dynamic (recursive) models incorporating behavioral restrictions into the standard programming form. Next the study of the location of agricultural processing industry is surveyed, and finally problems of practical application, including aggregation problems and questions of data availability, are reviewed.

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Journal Article
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Review of Marketing and Agricultural Economics, Volume 37, Number 01
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 Record created 2017-04-01, last modified 2017-04-04

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