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Does land use planning shape regional economies? A simultaneous analysis of housing supply, internal migration and local employment growth in the Netherlands

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  • Vermeulen, Wouter
  • van Ommeren, Jos

Abstract

Why has job growth over the past decades been weaker in the Dutch Randstad area than in surrounding regions? In a simultaneous equations analysis, we find that employment has adjusted to the regional supply of labour. Net internal migration was predominantly determined by regional housing supply, and not by employment growth. Growth of the regional housing stock appeared insensitive to changes in the number of people and jobs. This lack of responsiveness to demand conditions is consistent with the presence of strong restrictions on residential development near the main Dutch cities, suggesting that the current regional distribution of economic activity in the Netherlands reflects land use planning decisions.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Housing Economics.

Volume (Year): 18 (2009)
Issue (Month): 4 (December)
Pages: 294-310

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Handle: RePEc:eee:jhouse:v:18:y:2009:i:4:p:294-310

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Web page: http://www.elsevier.com/locate/inca/622881

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Keywords: Housing supply Land use regulation Regional labour markets;

References

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Citations

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Cited by:
  1. Lampin, Laure B.A. & Nadaud, Franck & Grazi, Fabio & Hourcade, Jean-Charles, 2013. "Long-term fuel demand: Not only a matter of fuel price," Energy Policy, Elsevier, vol. 62(C), pages 780-787.
  2. Wouter Vermeulen, 2011. "Agglomeration Externalities and Urban Growth Controls," SERC Discussion Papers 0093, Spatial Economics Research Centre, LSE.
  3. Geoffrey Hewings & Jae Hong Kim, 2011. "An Application of the Disequilibrium Adjustment Framework to Small Area Forecasting and Impact Analysis," ERSA conference papers ersa11p1839, European Regional Science Association.
  4. Peter Simmons & Yuanyuan Xie, 2013. "Where is the grass greener? A micro-founded model of migration with application to Guangdong," IZA Journal of Migration, Springer, vol. 2(1), pages 1-23, December.
  5. Oliver Bischoff, 2010. "Explaining Regional Variation in Equilibrium Real Estate Prices and Income," Working Papers 036, Chair for Economic Policy, University of Hamburg.
  6. Mitze, Timo & Stephan, Andreas, 2013. "Simultaneous-equations Analysis in Regional Science and Economic Geography," Working Paper Series in Economics and Institutions of Innovation 309, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  7. Karolien De Bruyne & Jan Van Hove, 2013. "Explaining the spatial variation in housing prices: an economic geography approach," Applied Economics, Taylor & Francis Journals, vol. 45(13), pages 1673-1689, May.
  8. Rowangould, Dana & Eldridge, Melody & Niemeier, Deb, 2013. "Incorporating regional growth into forecasts of greenhouse gas emissions from project-level residential and commercial development," Energy Policy, Elsevier, vol. 62(C), pages 1288-1300.
  9. Wouter Vermeulen, 2011. "Agglomeration Externalities and Urban Growth Controls," CPB Discussion Paper 191, CPB Netherlands Bureau for Economic Policy Analysis.
  10. Paul Cheshire, 2009. "Urban land markets and policy failures," LSE Research Online Documents on Economics 30837, London School of Economics and Political Science, LSE Library.
  11. Boaz Nandwa & Laudo Ogura, 2013. "Local urban growth controls and regional economic growth," The Annals of Regional Science, Springer, vol. 51(3), pages 659-670, December.
  12. Jae Kim & Geoffrey Hewings, 2012. "Integrating the fragmented regional and subregional socioeconomic forecasting and analysis: a spatial regional econometric input–output framework," The Annals of Regional Science, Springer, vol. 49(2), pages 485-513, October.

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