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Do political parties matter for local land use policies?

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  • Solé-Ollé, Albert
  • Viladecans-Marsal, Elisabet

Abstract

Despite interest in the impact of land use regulations on housing construction and housing prices, little is known about the drivers of these policies. Conventional wisdom holds that homeowners have an influence on restrictive local zoning. In this paper, we contend that the party controlling local government might make a major difference. We draw on data from a large sample of Spanish cities for the 2003–2007 political term and employ a regression discontinuity design to document that cities controlled by left-wing parties convert much less land from rural to urban uses than is the case in similar cities controlled by the right. The differences between governments on the two sides of the political spectrum are more pronounced in places with greater population heterogeneity and in those facing higher housing demand. We also present evidence suggesting that these partisan differences might ultimately impact on housing construction and housing price growth.

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Bibliographic Info

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

Volume (Year): 78 (2013)
Issue (Month): C ()
Pages: 42-56

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Handle: RePEc:eee:juecon:v:78:y:2013:i:c:p:42-56

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Web page: http://www.elsevier.com/locate/inca/622905

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Keywords: Land use regulations; Regression discontinuity; Political economy;

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References

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Citations

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Cited by:
  1. Albert Solé-Ollé & Pilar Sorribas-Navarro, 2014. "Does corruption erode trust in government? Evidence from a recent surge of local scandals in Spain," Working Papers, Institut d'Economia de Barcelona (IEB) 2014/26, Institut d'Economia de Barcelona (IEB).
  2. Miquel-Àngel Garcia-López & Albert Solé-Ollé & Elisabet Viladecans-Marsal, 2014. "Do land use policies follow road construction?," Working Papers, Institut d'Economia de Barcelona (IEB) 2014/2, Institut d'Economia de Barcelona (IEB).
  3. Albert Solé-Ollé & Elisabet Viladecans-Marsal, 2013. "The Influence Wielded by Land Developer Lobbies During the Housing Boom: Recent Evidence From Spain," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, Ifo Institute for Economic Research at the University of Munich, vol. 11(2), pages 43-49, 07.

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