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# Carriage Value Savings

## Definition

The economic advantage gained by rural producers located near towns, who receive the full value of transportation costs in their selling prices while simultaneously saving these costs in their purchases. This differential creates higher land values near towns compared to more distant areas, contributing to the spatial economic inequality that characterizes market economies.

## Source Chapter

Book III, Chapter 1

## Context

Smith uses this concept to illustrate how market proximity creates economic advantages that compound over time, explaining the observed differences in land cultivation and value between areas near and far from market towns.

## Economic Domain

Exchange

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