Appunti di Regional Economics + Land Rent Theories ( Primo + Secondo Parziale)

Name: Appunti di Regional Economics + Land Rent Theories ( Primo + Secondo Parziale)
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Appunti sulle lezioni del corso di Regional Economics + Land Rent Theories della Prof.ssa Roberta Capello del CdL Magistrale in Management of Built Environment - Politecnico di Milano basati su …

Esame Regional Economics + Land Rent Theories

Facoltà Ingegneria industriale

Dal corso del Prof. Capello Roberta

Università Politecnico di Milano

A.A. 2019-2020

142 pagine

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LOCATION THEORIES

deal with location process of firms and people.

If you look at a map you can see that there is one agglomeration.

(+) if you are in an agglomeration

economies
saving

agglomeration economies

Economies of Scale

This advantage encourage people to be concentrated in space.

The advantages are bigger the bigger the firm is because they depend on the size of the firm.

(ex. think about a car factory would produce less because it requires less size of the production.

For this reason, we can assume that production will be done in a few number of large plants.

The single firm wants to optimize production.

Localization Economies

The advantages that you get because you are located in an area where belong to the same industries.

the higher the number of firms the higher the industry's size.

Y = is the quantity of output produced.

LABOUR CAPITAL

Ex. 1 2

50 = 2, 2

48 = 2, 2

The quantity of output produced depends on the number of people employed and the number of plants.

The advantage comes from the size of the industry existing that is present in an area.

Location Theories

caps 1, 2, 3

Deal with location problems of firms and people.

If you look at a map you can see that there are agglomeration economies.

If you are in an agglomeration of economic activities you save money (saving).

Economies of Scale

The advantages that you have, the bigger the size of the firm is, because this depends on the size of the firm.

Economies of scale are divided into 3 categories:

Internal (less because seize size of the production).

(ex. Think about a car plant, world production, if you order a million of bolts. But if your plant is small, think about 50 million cars. You've got to produce more than output (ex. produce 100 cars) because they include internal economies so that unit cost is united by this million of.

(ex. Mention the cars in large cities) are a teaching to build it and a maintenance the amount of you need a lot of people (if you use it every day to reduce cost).

So, if you produce in large scale the unit cost drops.

For this reason we can assure that production will be done in a few areas. Because the firms want to have the production not for the size - the economies but

Localization Economies

The advantages that you get because you are located in an area where you belong to the same ties as the industries, the higher the number the higher the industry size.

For this reason we assume that the firm can participate in the localization economies of scale.

(For people in the area)

The advantages come from the size of the industry concentration that is present in an area. (In an industry there are firms of the same sector.)

Y is the quantity of output produced.

Labour (people)

Capital (plants) (machines)

ex.

The quality of output produced depends on the number of people in the firm and the plants produce.

Firms have advantages because they are more efficient

3 ORGANIZATION ECONOMIES

The advantages depend on the size of the city (the larger the city, the larger the advantages are)

A firm is located close many firms which belong from many industries. In the urban environment low for example an unemployment force that can be easily found.

It's an advantage not only of a firm, but people that decide to locate in cities because of the services available (amenities).

Utility is a drived factor of the behavior of people and the amenities

Transportation cost ⁼ Opportunity cost

Opportunity cost, which is the cost of spending time to do something that could be spent to do something else (time is a cost).

If the firm you decide to go to a place instead of spending time to go somewhere else, advantages of staying there.

These 2 forces explain the location of activities all over space.

A WEBER'S MODEL

He uses 3 forces to explain location choices

What can explain the choice of a firm to be located in one place?

Two strategies to solve the problem:

Find the location that minimizes the overall transportation costs

M₁ M₂ M₄

To solve this he assumes a (empata)

2) They compare the minimum cost with the additional transportation costs to reach a higher expression in an additional location from P.

In order to decide to relocate or not the firm:

If f > F ➔ The firm decide to move
If f ≤ F ➔ The firm don’t move

The critical isodapane

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