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Do Political Parties Matter for Local Land Use Policies?

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  • Albert Solé-Ollé
  • Elisabet Viladecans-Marsal

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. The 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 some results suggesting these partisan differences might ultimately impact on housing construction and housing price growth.

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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 4284.

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Date of creation: 2013
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Handle: RePEc:ces:ceswps:_4284

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Keywords: land use regulations; urban growth controls; political economy;

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References

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Cited by:
  1. Miquel-Àngel Garcia-López & Albert Solé-Ollé & Elisabet Viladecans Marsal, 2014. "Do Land Use Policies Follow Road Construction," CESifo Working Paper Series 4672, CESifo Group Munich.
  2. 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 2014/26, 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, vol. 11(2), pages 43-49, 07.

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