We set out an endogenous growth model along the lines of Romer(1990) and investigate the implications of financing new knowledge production (R&D) with rental income accruing to the knowledge stock used in goods production. The knowledge stock is a non-public input in goods production. The...

In his classic work, The Economics of Location, August Losch claimed to have proved that the free entry of firms to a market in two dimensional geographic space characterized by uniform quality throughout its area would result in hexagon-shaped market areas.

A group of well-known models in location theory can be classified according to three salient properties--the presence or absence of homogeneity in the geographic space with respect to first the distribution of consumers, secondly the distribution of inputs for production, and thirdly the...

Hotelling's 1929 article concerning the behavior of duopolists in a spatial setting has had a lasting influence in economics and political science. With a simple model, he was able to elucide why "our cities become uneconomically large and business districts within them too concentrated"; and...

The relative openness of the economies of the Atlantic provinces vis-a-vis the rest of Canada has important implications for the design of economic policy in Canada and in its constituent parts. This paper reports on the quantification of the relative openness of the economies of the Atlantic...

Alfred Weber (17) developed a model to show how a firm might locate when entering production given geographically distinct markets for the firm's product and the firm's inputs. The optimal location for the firm entering was shown to result from the solution to a straightforward transportation...

Von Thunen taught us, with the aid of a simple model (15), how to allocate and price agricultural land around a town. Cournot (1), Enke(3), and Samuelson(10) demonstrated how to price commodities at different points in space so as to cause efficient interregional trade to result when...

If an exhaustible resource stock is viewed as a capital good, one obtains in the Hotelling model that economic depreciation of the stock equals aggregate rent. When extraction costs depend on the stock of resource remaining, depreciation is less than aggregate rent. These results permit us to...

The exact properties of the production possibilty surface with two factors and three commodities (goods) have not been clearly defined.The present conclusion is that the production possibility surface is a ruled surface on which each straight line corresponds to a constant factor price ratio.

We report on the nature of a utility optimizing transfer from one regional government to another when local public goods are present. Computer examples reveal that small differences in regional endowments result in large differences in equilibrium outcomes for two regions, under optimal...