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Effective area as a measure of land factor

Author

Listed:
  • Régis Chenavaz

    () (ESG Management School, Paris)

  • Octavio Escobar

    () (ESG Management School, Paris)

Abstract

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
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2012/Volume32/EB-12-V32-I3-P190.pdf
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    References listed on IDEAS

    as
    1. Ciccone, Antonio & Hall, Robert E, 1996. "Productivity and the Density of Economic Activity," American Economic Review, American Economic Association, vol. 86(1), pages 54-70, March.
    2. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    3. 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.
    4. 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.
    5. Brülhart, Marius & Sbergami, Federica, 2009. "Agglomeration and growth: Cross-country evidence," Journal of Urban Economics, Elsevier, vol. 65(1), pages 48-63, January.
    6. Marcy Burchfield & Henry G. Overman & Diego Puga & Matthew A. Turner, 2006. "Causes of Sprawl: A Portrait from Space," The Quarterly Journal of Economics, Oxford University Press, vol. 121(2), pages 587-633.
    7. Amartya Sen, 1976. "Real National Income," Review of Economic Studies, Oxford University Press, vol. 43(1), pages 19-39.
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    More about this item

    Keywords

    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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