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Effective area as a measure of land factor


  • Régis Chenavaz

    () (ESG Management School, Paris)

  • Octavio Escobar

    () (ESG Management School, Paris)


Empirical studies use the total area as a measure of land factor. This measure is flawed as it ignores the effectiveness of that total area. We develop an estimator of effective area based on spatial population distribution. The empirical application for the OECD countries highlights the advantages of the United States in land factor and shows that Eastern European countries have the highest proportion of effective area. The estimation also supports Helpman's view: if population density increases, population disperses.

Suggested Citation

  • Régis Chenavaz & Octavio Escobar, 2012. "Effective area as a measure of land factor," Economics Bulletin, AccessEcon, vol. 32(3), pages 1962-1969.
  • Handle: RePEc:ebl:ecbull:eb-12-00091

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    References listed on IDEAS

    1. Vernon Henderson & Adam Storeygard & David N. Weil, 2011. "A Bright Idea for Measuring Economic Growth," American Economic Review, American Economic Association, vol. 101(3), pages 194-199, May.
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    5. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    6. Amartya Sen, 1976. "Real National Income," Review of Economic Studies, Oxford University Press, vol. 43(1), pages 19-39.
    7. Octavio R. Escobar Gamboa, 2010. "The (un)lucky neighbour: Differences in export performance across Mexico's states," Papers in Regional Science, Wiley Blackwell, vol. 89(4), pages 777-799, November.
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    More about this item


    Effective area; estimator; land; population; economic geography.;

    JEL classification:

    • C8 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics


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