College 4 Flashcards
Theories and methods - Sheet1 (14 cards)
Why do people use theories ?
Because of causality
How are land use and landprice explained?
Land use can be explained from the expected profit at a location
How does rent arise according to Ricardo?
- productivity differences of various piecies of land - situational differences
What are some asssumptions of Ricardos theory?
- Fixed land supply - Land is a free gift that can not be changed - Cultivation in order of fertility - Pop growth leads to intensification or cultivation less fertile land
What are some general assumptions of the Von Thunen model?
- Theorized a central city in a ‘'’Isolated State’ - CIty is self suffficient without external influences - Surrounded by wilderness - Land is completely flat - Soil qaulity and climate do not vary
How does the price evolve?
- Transport costs rise lineary with distance - Prices for agricultural products are determined at the market by supply and demand - Farmers act to maximize profits
What is the spatial pattern in the Von Thunen theory?
see image
In Alonsos theoy on what do the households spent their income?
They spent it on land, transportation and other goods
Where are employment and goods available according to Alonsos theory?
In the city centre!
Could you name 3 other economic assumptions of Alonso theory?
- Competitive markets - Location choice trade off between plot size and travel cost - Uniform city with land price that decreases with distance
What does the discrete choice theory model explain? +image
Models the probability that an individual selects a specific option from a set of mutually exclusive alternatives
How can the spatial interaction model be explained?
Interaction between two entities is assumed to be dependent on their size and inversely related to their distance. (ex migration, traffic volume and commuting)
What does the basic interaction formula consist of?
See image
What 3 sectors does Lowry distunquises?
- Basic sector (sell goods to non locals) - Retail sector (size determined by size and location of population) - Household sector
