Skip to Main content Skip to Navigation
Journal articles

Population distribution, effective area and economic growth

Abstract : The usual measure for the factor land is the total area. But total area is a flawed measure because land is of unequal quality. To account for land quality, we use an alternative measure called effective area . Effective area is based on spatial population distribution which captures both natural conditions and human activity. Theoretically, effective area explains economic growth better than total area that biases the measure of total factor productivity (TFP) growth. Empirically on the basis of 40 years of panel data for the United States, an increase of 10% in effective area is associated with an economic growth of 5%, and the omission of effective area undervalues the growth of TFP by 8.1%.
Complete list of metadata
Contributor : Elisabeth Lhuillier Connect in order to contact the contributor
Submitted on : Monday, February 6, 2017 - 1:50:44 PM
Last modification on : Tuesday, February 8, 2022 - 10:53:45 AM



Régis Chenavaz, Octavio Escobar. Population distribution, effective area and economic growth. Applied Economics, Taylor & Francis (Routledge), 2015, 47 (53), pp.5776--5790. ⟨10.1080/00036846.2015.1058907⟩. ⟨hal-01457308⟩



Record views