1. Distortions Resulting from Residential Land Use Controls in Metropolitan Areas
- Author
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Brian N. Jansen and Edwin S. Mills
- Subjects
education.field_of_study ,Economic growth ,Economics and Econometrics ,Residential land ,Land use ,business.industry ,Population ,Metropolitan area ,Agricultural economics ,Urban Studies ,restrict ,Accounting ,Economics ,business ,education ,Financial services ,Finance ,Panel data - Abstract
Residential land use controls in metropolitan areas are intended to and typically do restrict housing supply and inevitably raise housing prices. This paper estimates the effects of metropolitan area land use controls on housing prices, employing a remarkable data set compiled by Gyourko, Saiz and Summers. We embed the estimates in a four equation model that estimates the effects of the resulting high housing prices on metropolitan population, real incomes and employment.
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