Econometrica: Jan 1961, Volume 29, Issue 1

Economic Change and Rural-Urban Land Conversions<1:ECARLC>2.0.CO;2-4
p. 1-23

Richard F. Muth

This paper considers the problem of rural-urban land conversions as a special case of the more general one of how the equilibrium location of firms in a von Thunen plain changes with changes in the conditions of demand and supply for the commodities they produce. After treating the problem of equilibrium location rather generally, a model involving specific assumptions about the relevant functional relationships is developed in detail. Some tentative conclusions about the direction of land conversions are reached on the basis of the probable magnitudes of a few strategic parameters.

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