Location Choice and Land Use in an Isolated State: Endogenous Capital and Knowledge Accumulation
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.
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Volume (Year): 27 (1993)
Issue (Month): 1 ()
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