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Does land use planning shape regional economies? A simultaneous analysis of housing supply, internal migration and local employment growth in the Netherlands

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  • Vermeulen, Wouter
  • van Ommeren, Jos

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 has adjusted to the regional supply of labour. Net internal migration was predominantly determined by regional housing supply, and not by employment growth. Growth of the regional housing stock appeared insensitive to changes in the number of people and jobs. This lack of responsiveness to demand conditions is consistent with the presence of strong restrictions on residential development near the main Dutch cities, suggesting that the current regional distribution of economic activity in the Netherlands reflects land use planning decisions.

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  • Vermeulen, Wouter & van Ommeren, Jos, 2009. "Does land use planning shape regional economies? A simultaneous analysis of housing supply, internal migration and local employment growth in the Netherlands," Journal of Housing Economics, Elsevier, vol. 18(4), pages 294-310, December.
  • Handle: RePEc:eee:jhouse:v:18:y:2009:i:4:p:294-310
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    Cited by:

    1. Mojgan Hatami & Abu Hassan Abu Bakar & Nurwati Badarulzaman, 2013. "Impact of Migration on Housing Prices: A Case of Low-Income Households in Iran," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 9(1), pages 28-35, February.
    2. Karolien De Bruyne & Jan Van Hove, 2013. "Explaining the spatial variation in housing prices: an economic geography approach," Applied Economics, Taylor & Francis Journals, vol. 45(13), pages 1673-1689, May.
    3. Mitze, Timo & Stephan, Andreas, 2013. "Simultaneous-equations Analysis in Regional Science and Economic Geography," Working Paper Series in Economics and Institutions of Innovation 309, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    4. Bischoff, Oliver, 2012. "Explaining regional variation in equilibrium real estate prices and income," Journal of Housing Economics, Elsevier, vol. 21(1), pages 1-15.
    5. Evert Meijers & Martijn Burger & Edward L. Glaeser & Giacomo A. M. Ponzetto & Yimei Zou, 2016. "Urban networks: Connecting markets, people, and ideas," Papers in Regional Science, Wiley Blackwell, vol. 95(1), pages 17-59, March.
    6. Vermeulen, Wouter, 2011. "Agglomeration externalities and urban growth controls," LSE Research Online Documents on Economics 57852, London School of Economics and Political Science, LSE Library.
    7. Peter Simmons & Yuanyuan Xie, 2013. "Where is the grass greener? A micro-founded model of migration with application to Guangdong," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-23, December.
    8. repec:taf:specan:v:12:y:2017:i:4:p:357-378 is not listed on IDEAS
    9. Wouter Vermeulen, 2011. "Agglomeration Externalities and Urban Growth Controls," CPB Discussion Paper 191, CPB Netherlands Bureau for Economic Policy Analysis.
    10. Wouter Vermeulen, 2017. "Agglomeration externalities and urban growth controls," Journal of Economic Geography, Oxford University Press, vol. 17(1), pages 59-94.
    11. Boaz Nandwa & Laudo Ogura, 2013. "Local urban growth controls and regional economic growth," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(3), pages 659-670, December.
    12. Cheshire, Paul, 2009. "Urban land markets and policy failures," LSE Research Online Documents on Economics 30837, London School of Economics and Political Science, LSE Library.
    13. Lampin, Laure B.A. & Nadaud, Franck & Grazi, Fabio & Hourcade, Jean-Charles, 2013. "Long-term fuel demand: Not only a matter of fuel price," Energy Policy, Elsevier, vol. 62(C), pages 780-787.
    14. Geoffrey Hewings & Jae Hong Kim, 2011. "An Application of the Disequilibrium Adjustment Framework to Small Area Forecasting and Impact Analysis," ERSA conference papers ersa11p1839, European Regional Science Association.
    15. Bakens, J. & Nijkamp, P., 2011. "Migrant heterogeneity and urban development: A conceptual analysis," Serie Research Memoranda 0046, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    16. Rowangould, Dana & Eldridge, Melody & Niemeier, Deb, 2013. "Incorporating regional growth into forecasts of greenhouse gas emissions from project-level residential and commercial development," Energy Policy, Elsevier, vol. 62(C), pages 1288-1300.
    17. Dennis Schoenmaker & Arno Vlist, 2015. "On real estate development activity: the relationship between commercial and residential real estate markets," Letters in Spatial and Resource Sciences, Springer, vol. 8(3), pages 219-232, November.
    18. Jae Kim & Geoffrey Hewings, 2012. "Integrating the fragmented regional and subregional socioeconomic forecasting and analysis: a spatial regional econometric input–output framework," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(2), pages 485-513, October.
    19. Wouter Vermeulen & Jan Rouwendal, 2014. "On The Value Of Foregone Open Space In Sprawling Cities," Journal of Regional Science, Wiley Blackwell, vol. 54(1), pages 61-69, January.

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