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The production-location problem revisited

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Author Info
Dominique Peeters () (CORE, Université catholique de Louvain, Voie du Roman Pays 34, 1348 Louvain-la Neuve, Belgium)
Jacques-François Thisse () (CORE, Université catholique de Louvain, Voie du Roman Pays 34, 1348 Louvain-la Neuve, Belgium)

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Abstract

This paper reconsiders the production-location problem (PLP) initiated by Moses. The PLP is extended to allow for the geographical substitution between input sources, which is likely to occur in an integrated market. An algorithm is then proposed to solve this problem. Finally, using numerical examples, it is shown that small variations in the elasticity of substitution of the production function may lead to substantial jumps in the optimal firm location.

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Article provided by Springer in its journal Papers in Regional Science.

Volume (Year): 79 (2000)
Issue (Month): 2 ()
Pages: 221-231
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Handle: RePEc:spr:presci:v:79:y:2000:i:2:p:221-231

Note: Received: 2 December 1997
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