1. Space and Economics Chapter 5: Location of the consumer
Author
Wim Heijman (Wageningen, the Netherlands)
August 6, 2009

2. 5. Location of the consumer
5.1 Where does the consumer live?
5.2 Rank size rule (Zipf’s Law)
5.3 Relationship between urbanization and income per head
5.4 Migration
5.5 A partial location model for households
5.6 A general location model for households: the distance density model (DD-model)
5.7 Application

3. 5.1 Where does the consumer live?
Consumer location motives:
Distance to work and services (shops, schools);
Housing costs;
Available space.

4. 5.1 Where does the consumer live?
Figure 5.1: Municipalities in the Netherlands, ranked according to number of inhabitants in 1999.

5. Figure 5.2: Population density in Europe

6. Figure 5.3: Europe's population density: stable night lights

7. 5.1 Where does the consumer live?

8. 5.2 Rank size rule (Zipf’s Law)

9. 5.2 Rank size rule (Zipf’s Law)

10. Figure 5.4: Rank-size relationship The Netherlands (1999, 538 municipalities).

11. Figure 5.5: Rank size relationship UK (2002, 170 territorial units).

12. Figure 5.6: Rank size relationship Belgium (2002, 593 territorial units).

13. Figure 5.7: Rank size relationship Germany (2002, 442 territorial units).

14. 5.3 Relationship between urbanization and income per head
Figure 5.8: Urbanization rate and income per head (163 countries) in 2004.

15. Productivity (GDP per Capita) increases when population density increases

16. 5.3 Relationship between urbanization and income per head
Y for the natural logarithm of income per head
U for the urbanization rate
t - values in brackets

17. 5.4 Migration
Figure 5.9: GDP (PPS) per capita and Immigration as a percentage of the population (Runia, 2008)

18. M for natural logarithm of immigration
Y for the natural logarithm of GDP per head
t - values in brackets

19. 5.5 A partial location model for households
Figure 5.10: Centre with surrounding area.

20. 5.5 A partial location model for households

21. 5.5 A partial location model for households

22. 5.5 A partial location model for households
Figure 5.11: Optimum location of a consumer.

23. 5.6 A general location model for households: the distance density model (DD-model)

24. Figure 5.12: Four zones around a centre.
5.6 A general location model for households: the distance density model (DD-model)
Figure 5.12: Four zones around a centre.

25. 5.6 A general location model for households: the distance density model (DD-model)

26. 5.6 A general location model for households: the distance density model (DD-model)

27. Figure 5.13: London and its 33 quarters (with 1 for the City).
5.6 Application
Figure 5.13: London and its 33 quarters (with 1 for the City).

28. Figure 5.14: Amsterdam and its 15 quarters.
5.6 Application
Figure 5.14: Amsterdam and its 15 quarters.

29. Figure 5.15: Paris and its 20 quarters (with 1 for the centre).
5.6 Application
Figure 5.15: Paris and its 20 quarters (with 1 for the centre).

30. 5.6 Application