ABSTRACT
Distance determines an explicitly spatial type of exclusion for the public good in one direction, and a corresponding type of rejection in the other. If spatial interaction remains uninhibited by distance, that is, if the friction of distance is zero then there is no spatial exclusion or rejection. Such spatial diffusion, in turn, operates in two directions. Firstly, for every residential location, it generates a composite of public goods accessible to the individual in the sense that they are close enough for some interaction. Secondly, for every public good location, it generates congestion by those individuals who are close enough for some interaction. In the "open" city case, increasing the level of the spatial public good will increase densities everywhere. In the "closed" city case, on the other hand, densities will increase around the centre and will decrease at the periphery. Although the city will probably contract, utility must increase.
