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This paper contends that in many real-world situations, the frequency with which transactions take place is central to the relationship between land prices and location. It will therefore be argued that an approach which makes the transactions and journey frequency endogenous to the cost problem is the correct way in which time should be incorporated into many urban rent-distance models. Under these conditions, it can be shown that a convex distance-rent gradient can be generated without the need for the assumption of a convex indifference curve or isoquant. Furthermore, in many such cases, the convex distance-rent curve can be shown to exist irrespective of whether transport costs are concave, linear or greater than linear with distance. Real examples will be used to illustrate the problem., Introduction Existing bid-rent function analysis depends crucially on the assumption of the convexity of the indifference curve or the isoquant. The daily commuting of workers to a central business district [...]

Fundamental problems exist with the classical characterisation of agglomeration economies, since such definitions do not reflect the various cost issues on which firms may wish to economise. A lack of understanding of the relationship between the notions of market hierarchies and locational behaviour leads to confusion not only in applied economic interpretation, but more fundamentally in the construction of theoretical location models. In particular, neo-classical location theory can be shown to be crucially flawed as a basis for spatial analysis. This paper therefore attempts to provide an alternative definition of the various types of agglomeration economies such that the various strands of economic theory might be used in a more rigorous manner in the discussion of spatial increasing returns., Introduction The advent of the 'New Growth' theories has led to a recent revival of interest in the nature of endogenous technological change. In particular, Paul Krugman's (1991) book Geography [...]