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Measuring the costs of height restrictions with a general equilibrium model

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  • Arnott, Richard J.
  • MacKinnon, James G.

Abstract

This paper investigates the costs of residential height restrictions, using a numerically solvable general equilibrium model based on residential location theory. Time and money costs of travel are treated separately. Household demand recreational land and structure and actual construction cost data are used in an activity analysis formulation of the supply side of the housing market. There are two major conclusions. First, households' demand for recreational land is significant; ignoring it results in simulated cities considerably smaller and denser than is observed. Second, residential height restrictions merit serious consideration since their costs appear to be quite modest.
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Suggested Citation

  • Arnott, Richard J. & MacKinnon, James G., 1977. "Measuring the costs of height restrictions with a general equilibrium model," Regional Science and Urban Economics, Elsevier, vol. 7(4), pages 359-375, November.
  • Handle: RePEc:eee:regeco:v:7:y:1977:i:4:p:359-375
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    Cited by:

    1. Joshi, Kirti Kusum & Kono, Tatsuhito, 2009. "Optimization of floor area ratio regulation in a growing city," Regional Science and Urban Economics, Elsevier, vol. 39(4), pages 502-511, July.
    2. Gobillon, Laurent & le Blanc, David, 2008. "Economic effects of upfront subsidies to ownership: The case of the Prêt à Taux Zéro in France," Journal of Housing Economics, Elsevier, vol. 17(1), pages 1-33, March.
    3. Ioannis Tikoudis & Erik T. Verhoef & Jos N. van Ommeren, 2015. "Second-best Urban Tolls in a Monocentric City with Housing Market Regulations," Tinbergen Institute Discussion Papers 15-006/VIII, Tinbergen Institute.
    4. Marin Geshkov, 2015. "Urban Sprawl in Eastern Europe. The Sofia City Example," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 2, pages 101-116, April.
    5. Brueckner, Jan K. & Sridhar, Kala Seetharam, 2012. "Measuring welfare gains from relaxation of land-use restrictions: The case of India's building-height limits," Regional Science and Urban Economics, Elsevier, vol. 42(6), pages 1061-1067.
    6. Brueckner, Jan K., 1995. "Strategic control of growth in a system of cities," Journal of Public Economics, Elsevier, vol. 57(3), pages 393-416, July.
    7. 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.
    8. Hans R. A. Koster & Piet Rietveld & Jos N. van Ommerren, 2011. "Is the Sky the Limit? An Analysis of High-Rise Office Buildings," SERC Discussion Papers 0086, Spatial Economics Research Centre, LSE.
    9. Bertaud, Alain & Brueckner, Jan K., 2005. "Analyzing building-height restrictions: predicted impacts and welfare costs," Regional Science and Urban Economics, Elsevier, vol. 35(2), pages 109-125, March.
    10. Bertaud, Alain & Brueckner, Jan K., 2004. "Analyzing building height restrictions - predicted impacts, welfare costs, and a case study of Bangalore, India," Policy Research Working Paper Series 3290, The World Bank.
    11. Marin V. Geshkov & Joseph S. DeSalvo, 2012. "The Effect Of Land-Use Controls On The Spatial Size Of U.S. Urbanized Areas," Journal of Regional Science, Wiley Blackwell, vol. 52(4), pages 648-675, October.
    12. Tatsuhito Kono & Takayuki Kaneko & Hisa Morisugi, 2010. "Necessity of minimum floor area ratio regulation: a second-best policy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 44(3), pages 523-539, June.
    13. Kono, Tatsuhito & Joshi, Kirti Kusum & Kato, Takeaki & Yokoi, Takahisa, 2012. "Optimal regulation on building size and city boundary: An effective second-best remedy for traffic congestion externality," Regional Science and Urban Economics, Elsevier, vol. 42(4), pages 619-630.

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