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Does Land Use Planning shape Regional Economies?

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Author Info
Wouter Vermeulen () (CPB, The Hague, and VU University Amsterdam)
Jos van Ommeren () (Vrije Universiteit Amsterdam)

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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 adjusts to the regional supply of labour. Net internal migration is predominantly determined by regional housing supply and not by employment growth. Growth of the regional housing stock responds only moderately to changes in the number of people and jobs. This lack of responsiveness to demand conditions is plausibly related to restrictions on residential development, implying that the regional distribution of economic activity in the Netherlands reflects land use planning decisions.

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Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 08-004/3.

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Date of creation: 15 Jan 2007
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Handle: RePEc:dgr:uvatin:20080004

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Related research
Keywords: housing supply land use regulation regional labour markets regional development

Find related papers by JEL classification:
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
R23 - Urban, Rural, and Regional Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
R31 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location - - - Housing Supply and Markets
R52 - Urban, Rural, and Regional Economics - - Regional Government Analysis - - - Land Use and Other Regulations

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  1. Edward L. Glaeser and Joseph Gyourko, 2005. "Urban Decline and Durable Housing," Journal of Political Economy, University of Chicago Press, vol. 113(2), pages 345-375, April.
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  2. John M. Quigley & Steven Raphael, 2005. "Regulation and the High Cost of Housing in California," American Economic Review, American Economic Association, vol. 95(2), pages 323-328, May. [Downloadable!] (restricted)
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  3. Edward L. Glaeser & Joseph Gyourko & Raven E. Saks, 2006. "Urban growth and housing supply," Journal of Economic Geography, Oxford University Press, vol. 6(1), pages 71-89, January. [Downloadable!] (restricted)
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  4. Deitz, Richard, 1998. "A Joint Model of Residential and Employment Location in Urban Areas," Journal of Urban Economics, Elsevier, vol. 44(2), pages 197-215, September. [Downloadable!] (restricted)
  5. Alex Anas & Richard Arnott & Kenneth A. Small, 1998. "Urban Spatial Structure," Journal of Economic Literature, American Economic Association, vol. 36(3), pages 1426-1464, September. [Downloadable!] (restricted)
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  6. Steinnes, Donald N., 1977. "Causality and intraurban location," Journal of Urban Economics, Elsevier, vol. 4(1), pages 69-79, January. [Downloadable!] (restricted)
  7. DiPasquale, Denise, 1999. "Why Don't We Know More about Housing Supply?," The Journal of Real Estate Finance and Economics, Springer, vol. 18(1), pages 9-23, January. [Downloadable!] (restricted)
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