Aggregate Rent and Surplus Measurement in a von ThÜnen Model

摘要

While theoreticians continue to debate the appropriateness of surplus measurement in a von ThÜnen crop model, examples of practitioners appealing to such measures can be found. This paper shows that the well known equivalence between aggregate location rent and producers' surplus, extends to the case of a nonhomogeneous transportation system. Specifically a transportation route running through the region improves access to the town and encourages an extension of the production region. Results in the paper show the equilibrium price for the crop (as a function of the quality of the improved route); an equivalence between aggregate rent and the surplus accruing to crop producers; and the existence of an area within which crop production is cut back after the transport route is opened.