Constraints on Housing Supply: Natural and Regulatory
Two empirical papers study US housing markets and treat the impacts of both natural geographic constraints, such as water bodies and steep slopes, and regulatory restrictions. Albert Saiz (2010) concentrates on identifying the impact of natural geographic constraints. Saiz creates measures of developable land using an invariant 50-kilometer radius about an urban focal point. I criticize SaizÃ¢â¬â¢s geographical constraint on the basis that its invariant radius renders comparisons between urban areas of differing sizes of questionable value. Moreover, the inter-relation between the two kinds of constraints—the natural and the regulatory—is highly particular to the locale; for example, the effect of a natural geographical constraint would be neutralized by an interior regulatory constraint such as an urban growth boundary. Haifang Huang and Yao Tang (2010) concentrate on the impact of regulatory constraints on booms and busts in local housing markets, but they also make use of the natural-constraint data furnished by Saiz. Both studies also use the Wharton Land Use Regulatory Index, about which I raise a number of questions. I believe that the procedures employed by the two papers have the tendency to understate, at the aggregate level, the pernicious impact of regulatory restrictions.
Volume (Year): 8 (2011)
Issue (Month): 1 (January)
|Contact details of provider:|| Postal: |
Phone: (703) 993-1151
Web page: http://econjwatch.org/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Huang, Haifang & Tang, Yao, 2012.
"Residential land use regulation and the US housing price cycle between 2000 and 2009,"
Journal of Urban Economics,
Elsevier, vol. 71(1), pages 93-99.
- Huang, Haifang & Tang, Yao, 2010. "Residential Land Use Regulation and the US Housing Price Cycle Between 2000 and 2009," Working Papers 2010-11, University of Alberta, Department of Economics, revised 01 Nov 2010.
- Haifang Huang & Yao Tang, 2011. "Dropping the Geographic-Constraints Variable Makes Only a Minor Difference: Reply to Cox," Econ Journal Watch, Econ Journal Watch, vol. 8(1), pages 28-32, January.
- Albert Saiz, 2010. "The Geographic Determinants of Housing Supply," The Quarterly Journal of Economics, MIT Press, vol. 125(3), pages 1253-1296, August.
When requesting a correction, please mention this item's handle: RePEc:ejw:journl:v:8:y:2011:i:1:p:13-27. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jason Briggeman)The email address of this maintainer does not seem to be valid anymore. Please ask Jason Briggeman to update the entry or send us the correct address
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.