Von Thunen Model Assumptions One city only one

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Von Thunen Model

Von Thunen Model

Assumptions One city – only one market Isolated state surrounded by wilderness Flat, featureless

Assumptions One city – only one market Isolated state surrounded by wilderness Flat, featureless plain Land is equally farmable/productive No roads, only wagons Transport cost is proportional to distance (farther is more expensive) • Farmers seek to maximize profit • • •

Similar to a science experiment • He is eliminating variables to focus on the

Similar to a science experiment • He is eliminating variables to focus on the economic experiment

1826

1826

Factors influencing location of agriculture • Climate and natural environment Urban market • Culture

Factors influencing location of agriculture • Climate and natural environment Urban market • Culture • Economic factors High transportation cost items (vegetables, eggs, dairy, flowers) Intensive land use – high land rent Medium transportation cost items (corn, soybeans, mixed farming) More extensive land use – medium rent Lowest transportation cost items (forestry, wheat, livestock ranching) Most extensive land use – lowest land rent Simplified von Thünen model of agricultural land use (1826)

Bid Rent Theory Land closer to the city center costs more. Land farther away

Bid Rent Theory Land closer to the city center costs more. Land farther away costs less.

Criticisms • Brainstorm problems with his theory

Criticisms • Brainstorm problems with his theory

Criticisms • Different transportation costs – e. g. boats cheapest • Variations in topography

Criticisms • Different transportation costs – e. g. boats cheapest • Variations in topography • Soil fertility • Changes in demand/price of crops • Invention of refrigeration diminished perishability factor • Social, political, cultural factors also affect farm location

Apply Von Thunen to the US • US map • Apply the modern version

Apply Von Thunen to the US • US map • Apply the modern version • New York is the one city