Integrating regional economic development analysis and land use economics

Two largely separate literatures exist on regional economic development and land use economics. In this chapter, we argue that a full understanding of each of the two areas requires greater knowledge of their interrelationship. We review key studies of the two literatures, particularly those related to the close interconnectedness of regional economic development and land use. We contend that a critical shortcoming in the literatures is that key features that affect both land use and economic activity are typically not systematically considered. We then posit that the spatial equilibrium framework is especially suited for understanding the various feedback mechanisms that affect both. Also particularly promising are the increased availability of GIS and micro data, as well as recent methodological advances in empirical estimation and modeling.