Full Citation

Title: Local causes and aggregate implications of land use regulation

Citation Type: Miscellaneous

Publication Year: 2021

ISBN:

ISSN:

DOI: 10.2139/ssrn.3739183

NSFID:

PMCID:

PMID:

Abstract: I study why some cities have strict land use regulation, how regulation affects the U.S. economy, and how policymakers can mitigate its negative consequences. I develop a quantitative spatial equilibrium model where local regulation is determined endogenously, by voting. Homeowners in productive cities with attractive amenities vote for strict regulation. The model accounts for one-third of the observed variation in regulation across cities. Quantitative experiments show that excessive local regulation reduces aggregate productivity, but not necessarily welfare because, unlike renters, homeowners benefit from regulation. I propose federal policies that raise productivity and welfare by weakening incentives to regulate land use.

Url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3739183

User Submitted?: No

Authors: Parkhomenko, Andrii

Publisher:

Data Collections: IPUMS USA

Topics: Land Use/Urban Organization, Other

Countries: