Together with Weber (1909) and Losch (1940), Von Thünen (1826) is another author's pioneering theories of location or economic space. In addition to soil fertility (productivity of land) as a determinant of land rent in the theory of Ricardo, von Thünen introduced transport costs. Under assumptions simples60, Von Thunen shows that products are grown near the towns are
those with lower transport costs, high productivity and high land rents.
As the location of the products away from the center of the city, land rent and land productivity decreases with increasing transportation costs. Consequently, the contribution of Von Thünen's theory of the location lies in explaining the distribution of activities over a geographical space. The explanation of why a set of activities are concentrated in specific locations of the space is not addressed by Von Thünen. Krugman (1995) has termed the centrifugal forces to arguments presented by Von Thünen. Extensions Von Thunen model (1826) are presented by Takayama-Labys (1987) and Goldberg (1970).
those with lower transport costs, high productivity and high land rents.
As the location of the products away from the center of the city, land rent and land productivity decreases with increasing transportation costs. Consequently, the contribution of Von Thünen's theory of the location lies in explaining the distribution of activities over a geographical space. The explanation of why a set of activities are concentrated in specific locations of the space is not addressed by Von Thünen. Krugman (1995) has termed the centrifugal forces to arguments presented by Von Thünen. Extensions Von Thunen model (1826) are presented by Takayama-Labys (1987) and Goldberg (1970).
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