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The Henry George Rule, Scale Economies, and Optimal Land Use

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  • John Hartwick

Abstract

For optimally-sized subunits of a large homogeneous area, we observe that the value of aggregate resources in transportation equals the value of the output ascribable to the land. At the optimal size, increasing returns to scale in production balance off transportation costs so that the economy displays local constant returns to scale.

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  • John Hartwick, 1979. "The Henry George Rule, Scale Economies, and Optimal Land Use," Working Paper 342, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:342
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    Cited by:

    1. Hartwick, John M., 1979. "The Henry George Rule, Scale Economies and Optimal Land Use," Queen's Institute for Economic Research Discussion Papers 275147, Queen's University - Department of Economics.

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