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Regulatory Barriers to the Diffusion of Innovation: Some Evidence from Building Codes

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Author Info
Sharon M. Oster
John M. Quigley

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Abstract

Previous studies, including the reports of the Douglas and Kaiser Commission, have suggested that outmoded local regulation of residential construction has impeded technical progress in the industry. In this paper, we try to identify the determinants of differences across communities in these regulations. The permissibility of four particular innovations in a cross section of jurisdictions in 1970 and the timing of these innovations are explained by attributes of local firms, labor unions, building officials, and housing demand. Our results suggest that the educational level of the chief building official, the extent of unionization, and the relative size of housebuilding firms in an area affect the diffusion of innovations in residential construction.

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Publisher Info
Article provided by The RAND Corporation in its journal Bell Journal of Economics.

Volume (Year): 8 (1977)
Issue (Month): 2 (Autumn)
Pages: 361-377
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Handle: RePEc:rje:bellje:v:8:y:1977:i:autumn:p:361-377

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  1. Thomas J. Holmes & James A. Schmitz, Jr., 1995. "Resistance to new technology and trade between areas," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Win, pages 2-17. [Downloadable!]
  2. C. Theodore Koebel & Marilyn Cavell, 2006. "Characteristics of Innovative Production Home Builders," Economic Development Publications 39075, HUD USER, Economic Development. [Downloadable!]
  3. Carlton, Dennis W. & Perloff, Jeffrey M., 1989. "The Economics of Information," Research Reports 25156, University of Connecticut, Food Marketing Policy Center. [Downloadable!]
  4. Thomas J. Holmes & James A. Schmitz, Jr., 1994. "Resistance to technology and trade between areas," Staff Report 184, Federal Reserve Bank of Minneapolis. [Downloadable!]
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