The Open Automation and Control Systems Journal
2015, 7 : 2253-2261Published online 2015 November 10. DOI: 10.2174/1874444301507012253
Publisher ID: TOAUTOCJ-7-2253
Spatial Spillover Effects of Public Services on Factor Income--Based on Changes in Variable Costs
School of Transportation,
Wuhan University of Technology, Wuhan, Hubei, 430063, China.
ABSTRACT
In this paper, from the perspective of spatial economics, we studied the spatial spillover of public services and their effect on factor income. We establish a Nonlinear General Equilibrium Model, which contains “two regions, two sectors and two elements". For the determination of the spill-over effect, using Matlab mathematical software to draw a furger, through the mathematical method of derivative, we discuss the impact of public service on the factors’ such as flow and spatial distribution. The study found that public services can increase the rate of factor income and facilitate the flow of factors of production.