Full Citation

Title: Housing Supply Regulation: Local Causes and Aggregate Implications

Citation Type: Miscellaneous

Publication Year: 2018

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Abstract: I study why some cities have strict housing supply regulation, how regulation affects the economy, and what policymakers can do to mitigate its effects. I develop and calibrate a spatial equilibrium model with heterogeneous workers, where local regulation is endogenously determined by voting. Cities with high productivity and scarce land vote for strict regulation. In a quantitative exercise, I find that regulation leads to spatial misallocation of labor and therefore reduces aggregate productivity. It also contributes to skill sorting, and wage and house price dispersion across cities. A federal policy that weakens incentives to regulate could raise productivity by 2.5%.

Url: https://www.andrii-parkhomenko.net/files/Parkhomenko_JMP.pdf

User Submitted?: No

Authors: Parkhomenko, Andrii

Publisher: University of Southern California

Data Collections: IPUMS USA

Topics: Housing and Segregation, Labor Force and Occupational Structure, Other

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