Journal article

Local Causes And Aggregate Implications Of Land Use Regulation

Year:

2023

Published in:

Journal of Urban Economics
Land use regulation
spatial equilibrium model
local regulation
productivity
federal policies

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. Landowners in productive cities with attractive amenities vote for strict regulation. The model accounts for 40% of the observed differences in regulation across cities. Quantitative experiments show that excessive local regulation reduces aggregate productivity, but not necessarily welfare because, unlike renters, landowners benefit from regulation. I propose federal policies that raise productivity and welfare by weakening incentives to regulate land use.

Other publications by

17 publications found