SPATIAL PRICE EQUILIBRIUM AS A FOUNDATION TO UNIFIED SPATIAL COMMODITY MODELING

Various approaches to modeling spatial commodity flows are critically examined. Starting with the Linear programming transportation problem, it is found that the properties of the spatial equilibrium model can be served as a foundation to a host of other models. The convergence o f some key characteristics embedded in these models indicates that the spatial price equilibrium model is indeed an important cornerstone up on which the entropy formulations, imperfect competition and spatial e conometric models are built.