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Does Land Use Planning shape Regional Economies?

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  • Wouter Vermeulen

    ()
    (CPB, The Hague, and VU University Amsterdam)

  • Jos van Ommeren

    ()
    (Vrije Universiteit Amsterdam)

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. This discussion paper resulted in a publication in the Journal of Housing Economics , 2009, 18(4), 294-310.

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Bibliographic Info

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;

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  1. 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.
  2. Decressin, Jorg & Fatas, Antonio, 1995. "Regional labor market dynamics in Europe," European Economic Review, Elsevier, vol. 39(9), pages 1627-1655, December.
  3. Quigley, John M. & Raphael, Steven, 2006. "Regulation and the High Cost of Housing in California," Berkeley Program on Housing and Urban Policy, Working Paper Series qt3hh7s35m, Berkeley Program on Housing and Urban Policy.
  4. Wouter Vermeulen & Jos van Ommeren, 2004. "Interaction of Regional Population and Employment," Tinbergen Institute Discussion Papers 04-083/3, Tinbergen Institute.
  5. Edward L. Glaeser & Joseph Gyourko & Raven E. Saks, 2005. "Urban Growth and Housing Supply," Harvard Institute of Economic Research Working Papers 2062, Harvard - Institute of Economic Research.
  6. 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.
  7. Rosenthal, Stuart S. & Strange, William C., 2004. "Evidence on the nature and sources of agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 49, pages 2119-2171 Elsevier.
  8. Edward L. Glaeser & Joseph Gyourko, 2001. "Urban Decline and Durable Housing," Harvard Institute of Economic Research Working Papers 1931, Harvard - Institute of Economic Research.
  9. Steinnes, Donald N., 1977. "Causality and intraurban location," Journal of Urban Economics, Elsevier, vol. 4(1), pages 69-79, January.
  10. 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.
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