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Von Thünen's Model of the Dual Economy

  • Marc Nerlove
  • Efraim Sadka

Imagine a very large town, at the centre of a fertile plain which is crossed by no navigable river or canal. Throughout the plain the soil is capable of cultivation and of the same fertility. Far from the town, the plain turns into uncultivated wildernesss which cuts off all communication between this State and the outside world. There are no other towns on the plain. The central town must therefore supply the rural areas with all manufactured products and in return it will obtain all its provisions from the surrounding countryside. - J. H. von Thünen (1826; 1842, p.11)

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Paper provided by University of Bonn, Germany in its series Discussion Paper Serie A with number 269.

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Date of creation:
Date of revision: Dec 1989
Handle: RePEc:bon:bonsfa:269
Contact details of provider: Postal: Bonn Graduate School of Economics, University of Bonn, Adenauerallee 24 - 26, 53113 Bonn, Germany
Fax: +49 228 73 6884
Web page: http://www.bgse.uni-bonn.de

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  1. Pines, David & Sadka, Efraim, 1986. "Comparative statics analysis of a fully closed city," Journal of Urban Economics, Elsevier, vol. 20(1), pages 1-20, July.
  2. Mincer, Jacob, 1978. "Family Migration Decisions," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 749-73, October.
  3. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-42, March.
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