General Equilibrium in Space and Agglomeration

Urs SCHWEIZER

University of Bonn, Bonn, FRG

 

 

0. INTRODUCTION

This survey reviews some of the literature on space in general equilibrium theory. The material to be covered has been selected according to the following criteria. First, general equilibrium theory is meant to deal not only with the existence or nonexistence of Walrasian equilibrium in spatial economies. The number of contributions on this topic would not be sufficient to make for a full survey. The subject is rather extended to include first and second welfare theorems for models of location choice. The viewpoint, however, will be that of Paretian welfare economics where allocations are defined to be (Pareto) efficient if utility ...

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