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The Space Cost Curve and Variable Transport Costs: a General Production Function Case

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  • Yeung-nan Shieh

    (Department of Economics, University of Dallas, Irving, Texas, 75061)

Abstract

This paper attempts to incorporate a production function with input substitution into the Smith model and to re-examine the basic properties and the shape of space cost curve. It has shown the space cost curve will be (i) concave from below in the distance plane, when the transport rate is constant or decreasing with distance; (ii) linear, convex or concave from below in the distance plane, when the transport rate is increasing with distance. This result is quite different from Smith's, Richardson's and Mai's.

Suggested Citation

  • Yeung-nan Shieh, 1983. "The Space Cost Curve and Variable Transport Costs: a General Production Function Case," Urban Studies, Urban Studies Journal Limited, vol. 20(2), pages 241-245, May.
    • Handle: RePEc:sae:urbstu:v:20:y:1983:i:2:p:241-245
    DOI: 10.1080/00420988320080371
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    References listed on IDEAS

    as
    1. Mai, Chao-cheng, 1981. "Optimum location and the theory of the firm under demand uncertainty," Regional Science and Urban Economics, Elsevier, vol. 11(4), pages 549-557, November.
    2. Mathur, Vijay K., 1979. "Some unresolved issues in the location theory of the firm," Journal of Urban Economics, Elsevier, vol. 6(3), pages 299-318, July.
    Full references (including those not matched with items on IDEAS)

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