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Location Choice and Land Use in an Isolated State: Endogenous Capital and Knowledge Accumulation

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  • Zhang, Wei-Bin

Abstract

The purpose of this study is to develop an urban model describing an economic dynamics of three parts--the CBD, the residential area and the agricultural area--in an isolated urban system. The system consists of three--agricultural, industrial, and service--sectors. The model describes dynamic interactions among capital and knowledge accumulation with endogenous urban structure. The model may be considered, in a broad sense, as a synthesis of new urban economics (Alonso's model), urban economic growth theory with endogenous knowledge and Thunen's economic system. We show that the urban dynamics may have either a unique or multiple equilibria and may be either stable or unstable, depending upon creativity of various economic activities. We also examine effects of changes in some parameters upon the long-run urban structure.

Suggested Citation

  • Zhang, Wei-Bin, 1993. "Location Choice and Land Use in an Isolated State: Endogenous Capital and Knowledge Accumulation," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 27(1), pages 23-39.
  • Handle: RePEc:spr:anresc:v:27:y:1993:i:1:p:23-39
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    Cited by:

    1. Divine Odame APPIAH & Eric Kwabena FORKUO & John Tiah BUGRI, 2015. "Land Use Conversion Probabilities in a Peri-Urban District of Ghana," Chinese Journal of Urban and Environmental Studies (CJUES), World Scientific Publishing Co. Pte. Ltd., vol. 3(03), pages 1-21, September.
    2. Wei-Bin Zhang, 2015. "National Education and Global Economic Growth: A Synthesis of the Uzawa–Lucas Two-Sector and the Oniki–Uzawa Trade Models," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 6(4), pages 905-928, December.
    3. Bell, Kathleen P. & Irwin, Elena G., 2002. "Spatially explicit micro-level modelling of land use change at the rural-urban interface," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 27(3), November.

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