The Theory of Welfare Considerations in Public Facility Location Problems

Abstract

The paper provides a general theoretical framework for analyzing the locational choice of public facilities from the point of view of social welfare. Spatial interactions of individuals and economies to scale in the public sector are taken into account, and that, in turn, adds another dimension to the set of alternatives facing the decision maker. His choice has to be made by considering size as well as space alternatives for the provision of the public service. The paper presents a theoretical structure for ranking those alternatives. 1978 The Ohio State University