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Xerox Universfty Microfilms 300 North Zeeb Road Ann Arbor, Michigan 48106 ; I j 75-21,817 f. PINTO, James Virginie, 1944- BACKQROUND AND DEVELOPMENT OF LOCATION THEORY. The University of Oklahoma, Ph.D., 1975 Economics, theory XSrOX UniV0rSity Microfilms Ann, Arbor, Michigan 48106 0 1975 JAMES VIRGINIO PINTO ALL RIGHTS RESERVED THIS DISSERTATION HAS BEEN MICROFILMED EXACTLY AS RECEIVED. THE UNIVERSITY OF OKLAHOMA GRADUATE COLLEGE BACKGROUND AND DEVELOPMENT OF LOCATION THEORY A DISSERTATION SUBMITTED TO THE GRADUATE FACULTY in partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY BY JAMES V. PINTO Norman, Oklahoma 1975 BACKGROUND AND DEVELOPMENT OF LOCATION THEORY APPROVED BY IQJ). DISSERTATION COMMITTEE TABLE OF CONTENTS Page LIST OF TABLES ........................................... vii LIST OF ILLUSTRATIONS ................................. viii Chapt er I. INTRODUCTION.................................. 1 The Nature of Location T h e o r y ............... 1 The Problem, Objectives, and Scope ........... 3 Methods and Sources .......................... 11 II. THE ROOTS OF LOCATION THEORY: THÜNEN .... 13 Influences on ThUnen .......... 13 Perfect Competition, Ceteris Paribus, and ThUnen's M e t h o d ............................ 17 ThUnen's Theory of the Location of Agri­ cultural Activities ........................ 23 Location Theory vs. Land Use Models . 23 Assumptions and Descriptions of the Isolated State ....................... 23 Rings and Production..................... 29 Rent and Transportation C o s t ............. 3^ Intensity and the Theory of Crops .... 38 Summary and Conclusions ........ ...... 4l III. THE ROOTS OF LOCATION THEORY: WEBER ......... 43 Introduction.................................. 43 Alfred and M a x ................................ 44 Weber and T h U n e n .............................. 32 Alfred Weber's Theory of the Location of Industrial Activity ........................ 60 Assumptions and the Nature of Weber's Economic System .......... 60 Three Classification Systems ............ ?4 Weber's Theory Viewed as New Terminology and New Theoretical Constructs......... 73 1X 1 Chapter Page Ubiquities and Localized Materials . 75 Pure Materials and Gross Materials . ?6 Material Index and Locational W e i g h t ........................... 77 I s o d a p a n e ............................ 7& Location Triangle and Weight T r i a n g l e ............................ 80 Agglomerations and Deglomerations . 83 Summary and Conclusions ......................87 IV. THE ROOTS OF LOCATION THEORY; CHRISTALLER . 90 Introduction ................................ 90 Geography and Economics ..........92 Christaller and the Webers ....................95 Christaller and ThUnen ................. 102 Christaller's Use of Economics . 107 Christaller's Theory of Central Places . 112 Location Theory and Central Place Theory . 112 Central Place Model Assumptions ........ Il4 Three Principles of Location .............. II8 Summary and Conclusions .....................124 V. THE CONTRIBUTIONS OF WILLARD PHILLIPS . 128 Introduction................................. 128 Anti-Ricardian . ........................... 129 Value, Supply and Demand .....................134 Investment in Human Capital and Present V a l u e ................. 138 Situation, Transportation, and Rent .... l40 Location Theory ............................ l43 Summary and Conclusions .....................l48 VI. THE CONTRIBUTIONS OF WILHELM LAUNHARDT . I5O Introduction ................................ 150 Launhardt's Two Major Works in Location T h e o r y ......................................152 Discovery of a Neglected Book by Launhardt . 153 Summary eind Conclusions .....................171 VII. ANALYSIS AND TRANSLATION OF L O R I A .......... 173 Introduction................... 173 The First Article ........................... 174 The Second Article ........................... I8I Summary and Conclusions .....................I88 XV Chapter Page A p p e n d i x ...................................... I89 Letters of Permission to Translate .... 190 The First Article .......................... 192 The Second Article .......................... 217 VIII. THE UNKNOWNS AND THE K N O W N S ....................232 Descriptive Accounts of Location by Rela­ tively Unknown Economists and Non-Economists 232 Introduction .............................. 232 Arthur H. Hadley ............................ 233 J. J. M e n z i e s ............................ 236 Edward A. R o s s .............................. 237 A. B. C l a r k ................................ 239 Frederick S. H a l l .......................... 24l H. V. C o e s ...................................244 Henry C l a y ...................................246 Malcolm K e i r ................................ 247 Richard Hartshorne............ 250 Conclusions ................................ 253 Accounts of Location Found in the Works of Economists Known for Non-location Theory Contributions ..................... 254 Introduction .......................... 254 Sir William Petty ................... 255 Adam Smith ............................ 261 Alfred Marshall ..................... 264 John A. Hobson ....................... 273 Conclusions .......................... 276 IX. THE INFLUENCE OF EARLY WRITERS ON SELECTED MODERN LITERATURE .............................. 277 Introduction .................................. 277 Thünen and Muth .......... 277 Weber and H o o v e r ............ 282 Christaller and Lbsch ....................... 288 Summary and Conclusions ................. 293 X. SUMMARY AND CONCLUSIONS ........................ 295 Introduction ........ ............. 295 T h U n e n ........................................... 295 Weber .................... 298 Christaller ........ ................. 300 P h i l l i p s ......................................... 302 Launhardt .....................................303 Chapter Page L o r i a ........................................... 304 The Unknowns ...................................30? The Knowns ............... 308 Influence of Early W r i t e r s ....................309 Model Classifications and Model Dimensions . 310 Multiple Discoveries . ................. 312 Final Conclusions............................ 315 SELECTED BIBLIOGRAPHY................................ 316 A r t i c l e s .................................... 3l6 B o o k s .........................................327 Pamphlets and Reports ........................33^ Unpublished Material..... .................... 33^ Working Papers and Occasional Papers .... 335 VI LIST OF TABLES Table Page X—1. Classifications of M o d e l s ..................... 311 vxi LIST OF ILLUSTRATIONS Figure Page VI-1. Launhardt's Market Areas ...................... l6l VI-2. Launhardt's Location Triangle ............... l6l VI-3. Launhardt's Weight Triangle ................. I6I VI-4- Launhardt's "Pole” Method .................... 167 VI-5. Launhardt's Optimal Location Figure .......... 167 VII-1. A Diagrammatical Interpretation of Loria's M o d e l ........................................ l84 vixx CHAPTER I INTRODUCTION The Nature of Location Theory Location theory is an interdisciplinary subject. Economics and geography have contributed most to the area. Classical location theory deals primarily with the location of the individual producing unit in a world in which every­ thing else is fixed.^ The theory has been extended to 2 include the location of individual residences and the 3 location of towns. Hoover has given a definition of loca­ tion theory. Location theory is the attempt to understand how a specified