2.2. Comparative statics
We now ask basic comparative static questions about how the
equilibrium allocation changes if population, income or road
charges increase. The effects of population and income were
found by Wheaton (1974) for a partial equilibrium urban model
without congestion encumbered by continuous space.
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These
awkward details are bypassed here with little, if any, loss of
generality thanks to our analytical features. One of these, as
already noted, is the discrete core–periphery treatment. The
second is that we utilized the minimum expenditure and the
compensated demands instead of direct or indirect utility.