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The production-location problem revisited

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Peeters, Dominique [UCL] Thisse, Jacques-François [UCL]

This paper reconsiders the production-location problem (PLP) initiated by Moses. The PLP is extended to allow for the geographical substitution between input sources, which is likely to occur in an integrated market. An algorithm is then proposed to solve this problem. Finally, using numerical examples, it is shown that small variations in the elasticity of substitution of the production function may lead to substantial jumps in the optimal firm location.

Document type Article de périodique (Journal article)
Publication date 2000
Language Anglais
Journal information "Papers in Regional Science" - Vol. 79, no. 2, p. 221-231 (Mai 2000)
Peer reviewed yes
Publisher Wiley-Blackwell Publishing, Inc. (Malden, USA)
issn 1056-8190
e-issn 1435-5957
Publication status Publié
Affiliations UCL - EUEN/CORE - Center for operations research and econometrics
UCL - EUEN/CORE - Center for operations research and econometrics
Links
Bibliographic reference Peeters, Dominique ; Thisse, Jacques-François. The production-location problem revisited. In: Papers in Regional Science, Vol. 79, no. 2, p. 221-231 (Mai 2000)
Permanent URL http://hdl.handle.net/2078.1/23367