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:
Tyler Cowen writes American families shouldn’t be separated, either
Tyler Cowen writes Spatial Competition, the Industrial Revolution and the Great Divergence
Alex Tabarrok writes Economists in the Media
Tyler Cowen writes *Enron Ascending: The Forgotten Years, 1984-1996*
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.