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Local urban growth controls and regional economic growth

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  • Boaz Nandwa
  • Laudo Ogura

Abstract

Local land use regulations have been adopted to restrict population growth and urban sprawl in an attempt to prevent future problems like congestion, pollution, and loss of open space. However, when regulations become widespread in a region, it can be difficult for young workers and newcomers to find appropriate housing in the region. Because local governments may neglect the effects of their policies on the rest of the region, the resulting population size can be inefficient. We show that local adoption of housing regulations tends to over-restrict population growth when there are strong agglomeration economies in the regional production. On the other hand, when there is congestion in production, coordination among jurisdictions is undesirable if business interests are neglected. Copyright Springer-Verlag Berlin Heidelberg 2013

Suggested Citation

  • 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.
    • Handle: RePEc:spr:anresc:v:51:y:2013:i:3:p:659-670
    DOI: 10.1007/s00168-013-0568-y
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    More about this item

    Keywords

    R14; R21; R31; R52;
    All these keywords.

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

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