Carl Wilhelm Friedrich Launhardt ( German: Carl Wilhelm Friedrich Launhardt ; April 7, 1832 Hanover — May 14, 1918 , Hanover ) - German economist , member of the Prussian House of Lords , first rector of the Hanover Higher Technical School , creator of the theory of production location .
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Biography
Wilhelm Launhardt was born on April 7, 1832 in the Kingdom of Hanover . In 1848, he entered the Hanover Higher Technical School (now Hanover University ), where he was a member of the vocal club, and in 1859 passed the exam for a civil engineer. From 1854 to 1869 he worked at the State Construction Directorate of the Kingdom of Hanover, where in 1866 he was a member of the Geestemünd traffic inspectorate, and in 1867 he moved to the post of track engineer, and from the spring of 1869 he worked on the construction of the Venlo-Hamburg Railway. Since October 1869, he began teaching the construction of automobile and railway bridges at the Hanover Higher Technical School. In 1871, he received the title of professor, in 1872 a bridge was built in Goethe on his project. In 1875 he became the director of the Hanover Higher Technical School, and from 1880 to 06/30/1886 - its first rector. In 1880 he became an associate member of the Academy of Construction in Berlin. since 1889, after the accession of Hanover to Prussia, he became a member of the Prussian House of Lords, received an honorary doctorate from the Technical University of Dresden. May 14, 1918 Wilhelm died [2] .
Key Ideas in Science
Launhardt is a representative of the German classical political economy [3] , one of the first to use the mathematical apparatus, and in 1885 he published the book “Mathematical Foundations of Economics”, one of the developers of a pure theory of welfare economics.
Launhardt was one of the first to propose that rail pricing be based on marginal cost. Maximization of consumer welfare will be achieved if the additional income from the growth of railway tariffs is equal to the additional costs of transportation, which means that the fixed costs of the railways should be financed from tax revenues. And private competition does not provide maximum efficiency in terms of the lowest average costs per unit with an output volume that exceeds total market demand. If the railroads remain in private hands, then competition will decrease and railroad charges will not be able to maximize economic well-being. This leads to the fact that railways must be subsidized and regulated by the state or belong to it. Launhardt is the first to admit that utilities require government subsidies to maximize consumer welfare [4] .
Tunen Model Diagram
Complementing the Tyunen model with sources of raw materials and energy resources, he became one of the founders of the theory of production location [5] . Indicates that the production of perishable, heavy and bulky products is located near the city, and cattle breeding, for which transport costs per unit compared to production costs per unit of land, are small, is located on the border of the region. Land plots are divided into rings producing specialized products, where the product is produced that gives the maximum net profit per unit of land, forming a land use model with maximum land rent. The rent is not affected by production costs and transportation costs, which vary with distance from the center, the abscissa axis is the line of zero values of rent and the line of marginal costs, and the boundary of the industry zone where rent is maximum is at a distance where the marginal rent is equal to marginal production costs . Forms a " Tunen Model Diagram ", which demonstrates the rental function :
,
where R is the rent per 1 acre of land, e is the price of the goods, a is the production cost of the goods, f is the transport tariff per 1 km, k is the distance to the market [3] .
The vertical value indicates the cost of land for each type of land in value terms, and the horizontal distance in kilometers. The lower part of the diagram forms the Tyunen rings in which the manufactures are located, and in the upper right part the products producing these manufactures are indicated. The distance between the rings separating the crops of two crops:
,
where m1 and m2 are the yield of crops per unit of output, v1 and v2 are the volumes of crop production, t is the transport tariff per 1 t · km , r is the distance from the center [3] .
The diagram of the Tunen model is used to illustrate the theory of the choice of the Tunen culture under the following assumptions [3] :
- production function is linear homogeneous
- productivity per unit area is constant
- factor prices are the same
- transportation costs are linear from the distance from the center.
In case of violation of one of the assumptions, the intersection of rental functions occurs, which means that production of culture is possible in several rings [3] .
Launhardt Sales Area
Launhard determines the optimal sales area for competing producers located at the same point and serving consumers evenly dispersed in the zone. Determines the price of delivery of products to consumers - a function of a fixed price at the place of production and transportation costs, which are directly proportional to the distance to the market. Demand linearly depends on the local delivery price: the quantity of goods sold by one manufacturer is directly proportional to the cube of transport costs for delivery from the company to the circumference of the border of the zone where the market is located, and inversely proportional to the square of transport tariffs. On the diagram of the Sales Area, he showed that A and B are locations of two manufacturers; oval - sales area of producer B, whose product is the worst, that is, heavier per unit value of the product, whose inclination angle of the function of transport costs is greater; x and y - the distance of two manufacturers from point E, where ex-factory prices for two goods are equal. If the production costs of goods are equal, then the oval will be in the shape of a circle. If the transport costs of the two goods are equal, then the oval is formed into a hyperbola, concave towards the manufacturer with higher production costs. If production costs and transportation costs are equal, then the border becomes perpendicular, dividing the two points of location of producers. If there are more than two goods, then the sales area turns into an n-gon with straight sides [3] .
Launhardt location triangle
V. Launhardt presented his model in the work “Practice of efficient location of enterprises” from 1882 as a problem of production location (the problem of three points ), where one type of product is produced, unit costs are constant, there is one market, source of raw materials and source of materials. The optimal location will be where transport costs per unit of production are minimal: minimum for the delivery of raw materials and point of sale. The point of optimal location of the enterprise depends on the weight ratios of the transported goods and distances. The problem is solved by the Locational Triangle method, which has a geometric method for finding the placement point: a triangle similar to a weighted one is built on each side of the location triangle. Then around the triangles constructed in this way, circles are described whose intersection point is the minimum point of transport costs [7] :
{\ displaystyle T = AMX + BMY + CMZ} → ,
where T is the cost of transportation, X and Y are the weight of raw materials required to produce a unit of the final product, Z is the weight of the final product, AM, BM, CM is the distance from the internal point M (the location of the plant) to the vertices of the triangle [8] .
Bibliography
- Launhardt W. Uber Rentabilitlit und Richtungsfeststellung der StraBen . No publisher, Hannover. 1869
- Launhardt W. Theorie der Kommerziellen Trassierung der Verkehrswege. Zeitschrift des Hannoverschen Architekten- und Ingenieurvereins . Hannover, v. 18, 1872 pp. 515-534
- Launhardt W. Die Bestimmung des zweckmässigsten Standortes einer gewerblichen Anlage. Zeitschrift des Vereines deutscher Ingenieure . v. 26 (Mar), 1882 pp. 106-115
- Launhardt W. Wirtschaftliche Fragen des Eisenbahnwesens. Zentralblatt der Bauverwaltung 3, 1883 pp. 237-241,251-253,267-269,275-276,289-291, 304-306, 314-317
- Launhardt W. Mathematische Begrilndung der Volkswirtschaftslehre BG Teubner, Leipzig. 1885 (Mathematical Principles of Economics, Edward Elgar, Aldershot, 1963, 1993)
- Launhardt W. Das Wesen des Geldes und die Wlihrungsfrage. Engelmann, Leipzig 1885
- Launhardt W. Theorie des Trassierens Teil I, Schmorl, von Seefeld, Hannover. 1887 (The Principles of Railway Location, Part 1. The Theory of the Trace, being a discussion of the principles of location. Lawrence Asylum Press, Madras, v.1 ("the Commercial Trace" 1900), v.2 ( The Technical Tracing of Railway, 1902)
- Launhardt W. Theorie der Taritbildung der Eisenbahnen. Springer, Berlin 1890
- Launhardt W. Mark, Rubel und Rupie: ErUiuterungen zur Wlihrungsfrage und ErOrterungen Ilber das Wesen des Geldes. Springer, Berlin 1894
- Launhardt W. Am sausenden Webstuhl der Zeit: Übersicht über die Wirkengen der Entwicklung der Naturwissenschaften und der Technik auf das gesamte Kulturleben. Teubner, Leipzig, 1910
Notes
- ↑ 1 2 German National Library , Berlin State Library , Bavarian State Library , etc. Record # 118726706 // General regulatory control (GND) - 2012—2016.
- ↑ Deutsche Biographie. Launhardt, Wilhelm .
- ↑ 1 2 3 4 5 6 Blaug M. Economic thought in retrospect . - M .: Case, 1994 .-- S. 572-574. - 627 p. - ISBN 5-86461-151-4 .
- ↑ Blaug M. 100 great economists before Keynes . - SPb. : School of Economics, Omega-L, 2008. - S. 160-163. - 352 p. - ISBN 978-5-903816-01-9 .
- ↑ Granberg A.G. Fundamentals of the regional economy. - M .: HSE, 2000. - P. 44. - 495 p. - ISBN 5-7598-0074-4 .
- ↑ Launhardt W. Mathematische Begrilndung der Volkswirtschaftslehre // Leipzig: BGTeubner. - 1885. - T. 18 . - S. 157 (193) .
- ↑ Limonov L.E. Regional Economics and Spatial Development // M .: Yurayt Publishing House. - 2015 .-- T. 1 . - S. 71-73 . - ISBN 978-5-9916-4444-0 .
- ↑ Launhardt W. Theorie der Kommerziellen Trassierung der Verkehrswege. Zeitschrift des Hannoverschen Architekten- und Ingenieurvereins // Hannover. - 1872. - T. 18 . - S. 522 .
