by I calibrate the [spatial] model to the U.S. economy and find that the rise in regulation accounts for 23% of the increase in wage dispersion and 85% of the increase in house price dispersion across metro areas from 1980 to 2007. I find that if regulation had not increased, more workers would live in productive areas and output would be 2% higher. I also show that policy interventions that weaken incentives of local governments to restrict supply could reduce wage and house price dispersion, and boost productivity. That is from Andrii Parkhomenko (pdf), a recent job candidate, there are 62 pp. at the link, and for the pointer I thank Tyler Ransom. Here is a related column by Noah Smith. The post The impact of housing supply restrictions appeared first on Marginal REVOLUTION.
Topics:
Tyler Cowen considers the following as important: Economics, Law
This could be interesting, too:
Mark Thoma writes Links for 09-20-17
Mark Thoma writes FOMC statement
Tyler Cowen writes My Conversation with Larry Summers
Alex Tabarrok writes Conversations with Alex!
I calibrate the [spatial] model to the U.S. economy and find that the rise in regulation accounts for 23% of the increase in wage dispersion and 85% of the increase in house price dispersion across metro areas from 1980 to 2007. I find that if regulation had not increased, more workers would live in productive areas and output would be 2% higher. I also show that policy interventions that weaken incentives of local governments to restrict supply could reduce wage and house price dispersion, and boost productivity.
That is from Andrii Parkhomenko (pdf), a recent job candidate, there are 62 pp. at the link, and for the pointer I thank Tyler Ransom.
Here is a related column by Noah Smith.
The post The impact of housing supply restrictions appeared first on Marginal REVOLUTION.