American Economic Journal:
Applied Economics
ISSN 1945-7782 (Print) | ISSN 1945-7790 (Online)
Land Concentration and Long-Run Development in the Frontier United States
American Economic Journal: Applied Economics
(pp. 1–33)
Abstract
I study the long-run economic effects of land concentration on the American frontier. Using quasi-random variation in initial land allocations from a checkerboard formula, I analyze a large database of property assessments and find that historical concentration reduced modern land values by 4.5 percent and fixed capital by 23 percent. Modern effect sizes are 23−64 percent of their historical equivalents, indicating significant rates of both persistence and convergence over the last 150 years. Using archival data on tenant contracts, I argue that the low-powered incentives of share agreements discouraged investment by large-scale owners with long-term effects.Citation
Smith, Cory. 2026. "Land Concentration and Long-Run Development in the Frontier United States." American Economic Journal: Applied Economics 18 (2): 1–33. DOI: 10.1257/app.20230647Additional Materials
JEL Classification
- D82 Asymmetric and Private Information; Mechanism Design
- G31 Capital Budgeting; Fixed Investment and Inventory Studies; Capacity
- N41 Economic History: Government, War, Law, International Relations, and Regulation: U.S.; Canada: Pre-1913
- N51 Economic History: Agriculture, Natural Resources, Environment, and Extractive Industries: U.S.; Canada: Pre-1913
- Q12 Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
- Q15 Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
- Q24 Renewable Resources and Conservation: Land