Ventilatory efficiency for eliminating CO2 is expressed by the physiological dead space, VD phys = (1-PE CO2/Pa CO2) x VT, where PE is the mixed exhaled and Pa the arterial CO2-tension and VT the tidal volume. We used data from the multiple breath N2-wash-out with oxygen for calculating a functional dead space for nitrogen. VDF N2 = (1-FEN2/FidN2) x VT.FEN2 is the mixed exhaled N2-fraction and FidN2 the calculated mean alveolar N2-fraction during a wash-out with the same number of breaths to reach 2% N2 in end tidal air, but having completely even distribution. FidN2 is shown to be 0.20 +/- 0.01 for wash-outs using 20-150 breaths. The method was applied to wash-outs from 21 healthy volunteers, 18 patients with chronic obstructive lung disease and two subjects with acute bronchospasm. VDF was well related to VD phys CO2 (r = 0.78) but higher than the latter. In subjects with lung disease VDF was inversely related to the degree of obstruction expressed by forced expiratory volume in one second per cent of vital capacity (r = 0.85). The subjects with bronchospasm had very high VD/VTF in relation to their FEV%. If airway dead space predicted from height and sex is subtracted from VDF, the resulting alveolar dead space will be a good expression for uneven gas distribution in the lungs. We also deduced a direct mathematical relation between lung clearance index and VD/VTF. The documented good reproducibility of LCI is thus also valid for VD/VTF, while the latter better expresses ventilatory efficiency.