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Johann Heinrich von Thünen

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equals the subsistence of the laborer and their family. The idea he presented is that a surplus will arise on the earlier units of an investment of either capital or labor, but as time goes on the diminishing return of newer investments will mean that if wages vary with the level of productivity
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Thünen's model: the black dot represents a city; 1 (white) dairy and market gardening; 2 (green) forest for fuel; 3 (yellow) grains and field crops; 4 (red) ranching; the outer, dark green area represents wilderness where agriculture is not
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Timber and firewood would be produced for fuel and building materials in the second ring. Wood was a very important fuel for heating and cooking and is very heavy and difficult to transport so it is located close to the city.
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Von Thunen was born on June 24, 1783 on his father's estate Canarienhausen. His father was from an old feudal family. Von Thunen lost his father at the age of two. His mother remarried a merchant and the family moved to
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The third zone consists of extensive fields crops such as grain. Since grains last longer than dairy products and are much lighter than fuel, reducing transport costs, they can be located further from the city.
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where R = land rent; Y = yield per unit of land; c = production expenses per unit of commodity; p=market price per unit of commodity; F = freight rate (per agricultural unit, per mile); m=distance to market.
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The use which a piece of land is put to is a function of the cost of transport to market and the land rent a farmer can afford to pay (determined by yield, which is held constant here).
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Ranching is located in the final ring. Animals can be raised far from the city because they are self-transporting. Animals can walk to the central city for sale or for butchering.
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those that are early will receive a greater reward for their labor and capital. But if wage rates were determined using his formula, thus giving labor a share that will vary as a
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Von Thunen expected to take over his father's estate, which led him to study practical farming. In 1803, von Thunen published his first economic ideas.
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lies closest to the city. Since vegetables, fruit, milk and other dairy products must get to market quickly, they would be produced close to the city.
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Even though he never held a professorial position, von Thunen had substantial influence on economics. He has been described as one of the founders of
429:, Thunen developed some of the mathematical foundations of marginal productivity theory and wrote about the Natural Wage indicated by the formula 912: 355:
Farmers in the Isolated State transport their own goods to market via oxcart, across land, directly to the central city. There are no roads.
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Beyond the fourth ring lies the wilderness, which is too great a distance from the central city for any type of agricultural product.
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Untersuchungen über den Einfluß, den die Getreidepreise, der Reichthum des Bodens und die Abgaben auf den Ackerbau ausüben
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Thünen's model of agricultural land, created before industrialization, made the following simplifying assumptions:
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This formula was so important to him that it was a dying wish of his that it be placed on his tombstone.
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created by spatial variation or location of a resource. It is "that which can be earned
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productivity in a mathematically rigorous way, summarizing it in the formula in which
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The model generated four concentric rings of agricultural activity. Dairying and
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untangling the economic history of Europe and European colonialism before the
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Thünen was a Mecklenburg landowner, who in the first volume of his treatise
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Der isolirte Staat in Beziehung auf Landwirtschaft und Nationalökonomie
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Der isolirte Staat in Beziehung auf Landwirtschaft und Nationalökonomie
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Thünen's rings proved especially useful to economic history, such as
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as the greatest German economist of the nineteenth century" (
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The land is completely flat and has no rivers or mountains.
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equals the value of the product of labor and capital, and
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The city is located centrally within an "Isolated State."
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that which can be earned at the margin of production".
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Newspaper clippings about Johann Heinrich von Thünen
475:(marginal cost) which would later be popularized by 812: 321: 239: 1050: 343:The Isolated State is surrounded by wilderness. 358:Farmers behave rationally to maximize profits. 906: 268:Thünen developed the basics of the theory of 913: 899: 40: 748: 600: 550: 318: 920: 243: 163: 425:In the second volume of his great work 14: 1051: 993:James Maitland, 8th Earl of Lauderdale 689:"Von Thünen's Theory of Natural Wages" 642:"Von Thünen's Theory of Natural Wages" 894: 686: 639: 182:, was a prominent nineteenth-century 832:H. Schumacher-Zarchlin, ed. (1875). 819:Von Thünen's Theory of Natural Wages 744: 742: 740: 738: 736: 734: 732: 730: 596: 594: 546: 544: 542: 398:blurred the patterns on the ground. 871:Institute for New Economic Thinking 852:"Thünen, Johann Heinrich von"  796:Johann Heinrich von Thünen (1826). 24: 693:The Quarterly Journal of Economics 646:The Quarterly Journal of Economics 46:Johann Heinrich von Thünen, age 57 25: 1125: 843: 727: 591: 539: 1069:People from Friesland (district) 1003:Jean Charles Léonard de Sismondi 420: 838:. Wiegant, Hempel & Parey. 806: 789: 680: 633: 607:Journal of Economic Literature 522: 322:{\displaystyle R=Y(p-c)-YFm\,} 303: 291: 240:Model of agricultural land use 65:Canarienhausen in present-day 13: 1: 515: 224:Von Thunen was influenced by 208: 1114:University of Rostock alumni 867:"Johann Heinrich von Thünen" 751:"Johann Heinrich Von Thünen" 392:Civilization and Capitalism, 231:Von Thunen married in 1806. 27:German economist (1783–1850) 7: 882:20th Century Press Archives 601:Samuelson, Paul A. (1983). 488: 352:and climate are consistent. 10: 1130: 1008:Johann Heinrich von Thünen 471:, he also coined the term 176:Johann Heinrich von Thünen 34:Johann Heinrich von Thünen 928: 802:. Wirtschaft & Finan. 749:Schneider, Erich (1934). 551:Dickinson, H. D. (1969). 261:, connecting it with the 158: 148: 138: 126: 116: 111: 107: 99: 77: 51: 39: 32: 553:"Von Thünen's Economics" 1023:Edward Gibbon Wakefield 603:"Thünen at Two Hundred" 482:Principles of Economics 234: 858:Encyclopedia Americana 323: 250: 199:agricultural economics 172: 1018:Nassau William Senior 988:John Ramsay McCulloch 687:Moore, H. L. (1895). 640:Moore, H. L. (1895). 396:Industrial Revolution 324: 247: 167: 143:University of Rostock 1094:Economic geographers 1089:Classical economists 922:Classical economists 557:The Economic Journal 528:He "ranks alongside 279: 188:Mecklenburg-Strelitz 1104:Regional economists 1099:Regional scientists 814:Henry Ludwell Moore 133:Classical economics 1109:German geographers 938:Bernard Mandeville 469:The Isolated State 427:The Isolated State 319: 259:economic geography 255:The Isolated State 251: 203:economic geography 190:, now in northern 173: 1084:German economists 1079:German landowners 1046: 1045: 958:Jean-Baptiste Say 933:Francis Hutcheson 367:intensive farming 162: 161: 81:22 September 1850 16:(Redirected from 1121: 1028:Frédéric Bastiat 1013:John Stuart Mill 953:Anders Chydenius 915: 908: 901: 892: 891: 874: 862: 854: 839: 824: 823: 810: 804: 803: 793: 787: 786: 746: 725: 724: 684: 678: 677: 637: 631: 630: 613:(4): 1468–1488. 598: 589: 588: 563:(316): 894–902. 548: 537: 526: 460: 456: 447: 443: 439: 438: 437: 328: 326: 325: 320: 186:and a native of 84: 61: 59: 44: 30: 29: 21: 1129: 1128: 1124: 1123: 1122: 1120: 1119: 1118: 1049: 1048: 1047: 1042: 924: 919: 865: 849: 846: 828: 827: 811: 807: 794: 790: 767:10.2307/1907947 747: 728: 705:10.2307/1886011 685: 681: 658:10.2307/1883581 638: 634: 599: 592: 569:10.2307/2229798 549: 540: 534:Fernand Braudel 527: 523: 518: 510:Bid rent theory 491: 477:Alfred Marshall 458: 454: 445: 441: 433: 431: 430: 423: 388:Fernand Braudel 280: 277: 276: 242: 237: 211: 139:Alma mater 128: 121:Economic theory 112:Academic career 95: 91:in present-day 86: 82: 73: 63: 57: 55: 47: 35: 28: 23: 22: 18:Von Thünen rent 15: 12: 11: 5: 1127: 1117: 1116: 1111: 1106: 1101: 1096: 1091: 1086: 1081: 1076: 1074:German farmers 1071: 1066: 1061: 1044: 1043: 1041: 1040: 1038:Robert Torrens 1035: 1030: 1025: 1020: 1015: 1010: 1005: 1000: 998:Jeremy Bentham 995: 990: 985: 983:Henry Thornton 980: 975: 970: 965: 963:Thomas Malthus 960: 955: 950: 945: 940: 935: 929: 926: 925: 918: 917: 910: 903: 895: 889: 888: 875: 869:. HET, at the 863: 845: 844:External links 842: 841: 840: 826: 825: 822:. G. H. Ellis. 805: 788: 726: 699:(4): 388–408. 679: 652:(3): 291–304. 632: 590: 538: 520: 519: 517: 514: 513: 512: 507: 502: 500:Hotelling rent 497: 495:Ricardian rent 490: 487: 451:geometric mean 422: 419: 360: 359: 356: 353: 347: 344: 341: 330: 329: 317: 314: 311: 308: 305: 302: 299: 296: 293: 290: 287: 284: 263:theory of rent 241: 238: 236: 233: 226:Albrecht Thaer 210: 207: 160: 159: 156: 155: 153:Albrecht Thaer 150: 146: 145: 140: 136: 135: 130: 127:School or 124: 123: 118: 114: 113: 109: 108: 105: 104: 101: 97: 96: 87: 85:(aged 67) 79: 75: 74: 64: 53: 49: 48: 45: 37: 36: 33: 26: 9: 6: 4: 3: 2: 1126: 1115: 1112: 1110: 1107: 1105: 1102: 1100: 1097: 1095: 1092: 1090: 1087: 1085: 1082: 1080: 1077: 1075: 1072: 1070: 1067: 1065: 1062: 1060: 1057: 1056: 1054: 1039: 1036: 1034: 1031: 1029: 1026: 1024: 1021: 1019: 1016: 1014: 1011: 1009: 1006: 1004: 1001: 999: 996: 994: 991: 989: 986: 984: 981: 979: 978:David Ricardo 976: 974: 973:Francis Place 971: 969: 966: 964: 961: 959: 956: 954: 951: 949: 946: 944: 941: 939: 936: 934: 931: 930: 927: 923: 916: 911: 909: 904: 902: 897: 896: 893: 887: 883: 879: 876: 872: 868: 864: 860: 859: 853: 848: 847: 837: 836: 830: 829: 821: 820: 815: 809: 801: 800: 792: 784: 780: 776: 772: 768: 764: 760: 756: 752: 745: 743: 741: 739: 737: 735: 733: 731: 722: 718: 714: 710: 706: 702: 698: 694: 690: 683: 675: 671: 667: 663: 659: 655: 651: 647: 643: 636: 628: 624: 620: 616: 612: 608: 604: 597: 595: 586: 582: 578: 574: 570: 566: 562: 558: 554: 547: 545: 543: 535: 531: 525: 521: 511: 508: 506: 503: 501: 498: 496: 493: 492: 486: 484: 483: 478: 474: 470: 465: 462: 452: 436: 428: 418: 416: 412: 411:economic rent 408: 404: 399: 397: 393: 389: 384: 381: 378: 374: 370: 368: 363: 357: 354: 351: 348: 345: 342: 339: 338: 337: 334: 315: 312: 309: 306: 300: 297: 294: 288: 285: 282: 275: 274: 273: 271: 266: 264: 260: 256: 246: 232: 229: 227: 222: 219: 217: 206: 204: 200: 195: 193: 189: 185: 181: 177: 170: 166: 157: 154: 151: 147: 144: 141: 137: 134: 131: 125: 122: 119: 115: 110: 106: 102: 98: 94: 90: 80: 76: 72: 68: 54: 50: 43: 38: 31: 19: 1033:Thomas Tooke 1007: 856: 834: 818: 808: 798: 791: 758: 755:Econometrica 754: 696: 692: 682: 649: 645: 635: 610: 606: 560: 556: 524: 505:Alfred Weber 480: 472: 468: 466: 463: 434: 426: 424: 421:Natural wage 414: 406: 400: 391: 385: 382: 379: 375: 371: 364: 361: 350:Soil quality 335: 331: 267: 254: 252: 230: 223: 220: 212: 196: 179: 175: 174: 168: 83:(1850-09-22) 62:24 June 1783 1064:1850 deaths 1059:1783 births 761:(1): 1–12. 473:Grenzkosten 440:, in which 407:Thünen rent 100:Nationality 1053:Categories 968:James Mill 948:Adam Smith 943:David Hume 516:References 249:profitable 209:Early life 149:Influences 67:Wangerland 58:1783-06-24 775:0012-9682 713:0033-5533 666:0033-5533 619:0022-0515 577:0013-0133 403:economics 307:− 298:− 184:economist 129:tradition 71:Friesland 816:(1895). 489:See also 270:marginal 216:Hooksiel 884:of the 880:in the 861:. 1920. 783:1907947 721:1886011 674:1883581 627:2725147 585:2229798 479:in his 432:√ 192:Germany 180:Thuenen 93:Rostock 781:  773:  719:  711:  672:  664:  625:  617:  583:  575:  409:is an 171:, 1842 103:German 89:Tellow 779:JSTOR 717:JSTOR 670:JSTOR 623:JSTOR 581:JSTOR 415:above 117:Field 771:ISSN 709:ISSN 662:ISSN 615:ISSN 573:ISSN 530:Marx 457:and 235:Work 201:and 78:Died 52:Born 886:ZBW 763:doi 701:doi 654:doi 565:doi 467:In 401:In 390:'s 1055:: 855:. 777:. 769:. 757:. 753:. 729:^ 715:. 707:. 695:. 691:. 668:. 660:. 648:. 644:. 621:. 611:21 609:. 605:. 593:^ 579:. 571:. 561:79 559:. 555:. 541:^ 536:). 485:. 461:. 435:AP 405:, 228:. 218:. 194:. 69:, 914:e 907:t 900:v 873:. 785:. 765:: 759:2 723:. 703:: 697:9 676:. 656:: 650:9 629:. 587:. 567:: 459:P 455:A 446:P 442:A 316:m 313:F 310:Y 304:) 301:c 295:p 292:( 289:Y 286:= 283:R 60:) 56:( 20:)

Index

Von Thünen rent

Wangerland
Friesland
Tellow
Rostock
Economic theory
Classical economics
University of Rostock
Albrecht Thaer

economist
Mecklenburg-Strelitz
Germany
agricultural economics
economic geography
Hooksiel
Albrecht Thaer

economic geography
theory of rent
marginal
Soil quality
intensive farming
Fernand Braudel
Industrial Revolution
economics
economic rent
geometric mean
Alfred Marshall

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