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How Densely Do Manufacturing Establishments Occupy Land?

Author

Listed:
  • Mayneris, Florian
  • Behrens, Kristian
  • Ndjanmou Bieda, Theophile

Abstract

We construct a dataset on the size of parcels and on the footprint of buildings occupied by manufacturing establishments in Canada. We find that establishments in big cities and close to city centers occupy their parcels more densely, both in terms of employment and building footprint. Moreover, establishments with more employees use less land per worker. These facts cannot be rationalized by a Cobb-Douglas production function featuring land and labor as production factors. They are, however, consistent with a modified-CES production function in which land has a fixed cost component. The calibrated elasticity of substitution between land—as measured by parcel size—and labor is low (between 0.2 and 0.4).

Suggested Citation

  • Mayneris, Florian & Behrens, Kristian & Ndjanmou Bieda, Theophile, 2022. "How Densely Do Manufacturing Establishments Occupy Land?," CEPR Discussion Papers 17749, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:17749
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    More about this item

    Keywords

    Land use; Land and production; Production function; Geo-referenced data; Building and parcel polygons; Manufacturing;
    All these keywords.

    JEL classification:

    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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