ABSTRACT
This chapter provides the neoclassical approach primarily for ease of exposition and to point up the potential of this approach without claiming that it is the best in general. It presents a demonstration of an effective applied general interregional equilibrium analysis (AGIE) study that has general applicability in terms of the basic relationships covered and usefulness of findings. The chapter examines the production of transportation services as a resource-using activity, whether to provide intermediate inputs or furnish final consumption goods, must be introduced at the very start in treating a regional or interregional space economy. It addresses some basic relationships of a relevant applied general interregional equilibrium analysis. The chapter assesses trade and location within various country world, each country comprising a single region. It also examines some of the seminal contributions that regional scientists have already made for the yet-to-be realized effective AGIE model.
