Time-To-Plan Lags for Commercial Construction Projects
AbstractWe use a large project-level dataset to estimate the length of the planning period for commercial construction projects in the United States. We find that these time-to-plan lags are long, averaging about 17 months when we aggregate the projects without regard to size and more than 28 months when we weight the projects by their construction cost. The full distribution of time-to-plan lags is very wide, and we relate this variation to the characteristics of the project and its location. In addition, we show that time-to-plan lags lengthened by 3 to 4 months, on average, over our sample period (1999 to 2010). Regulatory factors are associated with the variation in planning lags across locations, and we present anecdotal evidence that links at least some of the lengthening over time to heightened regulatory scrutiny.
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Date of creation: Sep 2013
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- Jonathan N. Millar & Stephen D. Oliner & Daniel E. Sichel, 2012. "Time-to plan lags for commercial construction projects," Finance and Economics Discussion Series, Board of Governors of the Federal Reserve System (U.S.) 2012-34, Board of Governors of the Federal Reserve System (U.S.).
- Stephen D. Oliner & Jonathan N. Millar & Daniel E. Sichel, 2012. "Time-to-plan lags for commercial construction projects," Working Papers 36393, American Enterprise Institute.
- E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Capital; Investment; Capacity
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
- L74 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Construction
- R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-09-26 (All new papers)
- NEP-MAC-2013-09-26 (Macroeconomics)
- NEP-PPM-2013-09-26 (Project, Program & Portfolio Management)
- NEP-URE-2013-09-26 (Urban & Real Estate Economics)
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