Distortions Resulting from Residential Land Use Controls in Metropolitan Areas
Residential land use controls in metropolitan areas are intended to and typically do restrict housing supply and inevitably raise housing prices. This paper estimates the effects of metropolitan area land use controls on housing prices, employing a remarkable data set compiled by Gyourko, Saiz and Summers. We embed the estimates in a four equation model that estimates the effects of the resulting high housing prices on metropolitan population, real incomes and employment. Copyright The Author(s) 2013
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