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Title: The Heterogeneous Effect of Local Land-Use Restrictions Across US Households.

Citation Type: Working Paper

Publication Year: 2021

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Abstract: Using a structural approach, I quantify the eect of land-use regulations on dierent age and education groups. Building on the seminal work of Roback, 1982, I estimate a dynamic spatial structural equilibrium model of household location choice, local housing supply, and amenity supply. I show that in the long-run, removing land-use restrictions benefits all household groups and increases aggregate consumption by 7.1%. These consumption gains vary across households, less educated and younger households see increases in consumption about twice as large as more educated or older households. In contrast, in the short-run, removing landuse regulations reduces the consumption of older-richer homeowners while increasing the consumption of younger renters. In a counterfactual 1990-2019 transition, abolishing landuse regulations reduces the consumption of households born before the mid-1960s, while increasing consumption of more recent generations. Given the diffculty in reforming landuse regulations, I explore whether a shift to remote working or creating new urban areas leads to similar consumption gains compared with removing land-use restrictions. Qualitatively, I find the gains are similar, but quantitatively are only about 20% as large as abolishing land-use regulations from existing urban areas.

Url: https://www.davidclindsay.net/uploads/JMP_DavidLindsay.pdf

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Authors: Lindsay, David

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Institution: University of California

Pages: 1-74

Publisher Location: Los Angeles

Data Collections: IPUMS USA

Topics: Housing and Segregation, Population Mobility and Spatial Demography

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