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Lobbying, political competition, and local land supply: recent evidence from Spain

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  • Albert Solé-Ollé

    ()
    (Universitat de Barcelona, IEB & Cesifo)

  • Elisabet Viladecans-Marsal

    ()
    (Universitat de Barcelona & IEB)

Abstract

We analyze whether local land supply is influenced by the degree of political competition, and interpret the findings as being indicative of the influence wielded by land development lobbies. We use a new database including both political and land supply data for more than 2,000 Spanish municipalities for the period 2003-2007. In Spain, land use policies are largely a local responsibility with municipalities having periodically to pass comprehensive land use plans. The main policy variable in these plans, and the one analyzed here, is the amount of land classified for potential development. We measure local political competition as the margin of victory of the incumbent government. We instrument this variable using the number of votes obtained by parties represented in local government when standing at the first national legislative elections following the re-establishment of democracy, and the number of votes they actually obtained regionally at the national legislative elections. The results indicate that stiffer political competition does indeed reduce the amount of new land designated for development. This effect is found to be most marked in suburbs, in towns with a high percent of commuters and homeowners, and in municipalities governed by the left.

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Bibliographic Info

Paper provided by Institut d'Economia de Barcelona (IEB) in its series Working Papers with number 2010/45.

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Length: 45 pages
Date of creation: 2010
Date of revision:
Handle: RePEc:ieb:wpaper:2010/10/doc2010-45

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Keywords: Land use regulations; urban growth controls; political economy.;

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  1. Albert Sole-Olle & Elisabet Viladecans-Marsal, 2010. "Lobbying, political competition, and local land supply: recent evidence from Spain," Working Papers in Economics 248, Universitat de Barcelona. Espai de Recerca en Economia.
  2. Svaleryd, Helena & Vlachos, Jonas, 2007. "Political Rents in a Non-Corrupt Democracy," Working Paper Series 698, Research Institute of Industrial Economics, revised 26 Mar 2008.
  3. Calabrese, Stephen & Epple, Dennis & Romano, Richard, 2007. "On the political economy of zoning," Journal of Public Economics, Elsevier, vol. 91(1-2), pages 25-49, February.
  4. Christian A. L. Hilber & Frédéric Robert-Nicoud, 2011. "On The Origins Of Land Use Regulations: Theory And Evidence From Us Metro Areas," Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva 11081, Institut d'Economie et Econométrie, Université de Genève.
  5. Glaeser, Edward L & Gyourko, Joseph & Saks, Raven, 2005. "Why Is Manhattan So Expensive? Regulation and the Rise in Housing Prices," Journal of Law and Economics, University of Chicago Press, vol. 48(2), pages 331-69, October.
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  7. Fran?ois Ortalo-Magn? & Andrea Prat, 2014. "On the Political Economy of Urban Growth: Homeownership versus Affordability," American Economic Journal: Microeconomics, American Economic Association, vol. 6(1), pages 154-81, February.
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  12. Timothy Besley & Torsten Persson & Daniel M. Sturm, 2010. "Political Competition, Policy and Growth: Theory and Evidence from the United States," CEP Discussion Papers dp1009, Centre for Economic Performance, LSE.
  13. Brueckner, Jan K. & Lai, Fu-Chuan, 1996. "Urban growth controls with resident landowners," Regional Science and Urban Economics, Elsevier, vol. 26(2), pages 125-143, April.
  14. Edward L. Glaeser & Bryce A. Ward, 2006. "The Causes and Consequences of Land Use Regulation: Evidence from Greater Boston," NBER Working Papers 12601, National Bureau of Economic Research, Inc.
  15. Gene Grossman & Elhanan Helpman, 1994. "Electoral Competition and Special Interest Politics," NBER Working Papers 4877, National Bureau of Economic Research, Inc.
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  18. James H. Stock & Motohiro Yogo, 2002. "Testing for Weak Instruments in Linear IV Regression," NBER Technical Working Papers 0284, National Bureau of Economic Research, Inc.
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Cited by:
  1. Albert Solé-Ollé & Elisabet Viladecans-Marsal, 2011. "Local spending and the housing boom," Working Papers 2011/27, Institut d'Economia de Barcelona (IEB).
  2. Albert Sole-Olle & Elisabet Viladecans-Marsal, 2010. "Lobbying, political competition, and local land supply: recent evidence from Spain," Working Papers in Economics 248, Universitat de Barcelona. Espai de Recerca en Economia.
  3. Miquel-Àngel Garcia-López & Albert Solé-Ollé & Elisabet Viladecans-Marsal, 2014. "Do land use policies follow road construction?," Working Papers 2014/2, Institut d'Economia de Barcelona (IEB).
  4. Albert Solé-Ollé & Elisabet Viladecans-Marsal, 2013. "Do Political Parties Matter for Local Land Use Policies?," CESifo Working Paper Series 4284, CESifo Group Munich.
  5. 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).
  6. 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.
  7. Elena Costas & Albert Sole-Olle & Pilar Sorribas-Navarro, 2011. "Corruption scandals, press reporting, and accountability. Evidence from Spanish mayors," Working Papers in Economics 255, Universitat de Barcelona. Espai de Recerca en Economia.
  8. Costas-Pérez, Elena & Solé-Ollé, Albert & Sorribas-Navarro, Pilar, 2012. "Corruption scandals, voter information, and accountability," European Journal of Political Economy, Elsevier, vol. 28(4), pages 469-484.

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