Equity and Efficiency in Public Facility Location

Abstract In designing a system of urban public service centers, planners should consider both equity and efficiency effects in selecting the size of each center and the spacing between centers. The paper establishes theoretical and operational concepts for evaluating equity and efficiency, as affected by size and spacing alternatives. No objective means exists for determining the relative importance of equity and efficiency, so the decision, ultimately, is subjective. However, theoretical, empirical and simulation evidence indicate that equity is more sensitive than efficiency to the selection of size and spacing, within a wide range of alternatives. This suggests that the equity criterion is important in the design of public service systems, and deserves more attention in the public facility location literature than it has received in the past.