IDEAS home Printed from https://ideas.repec.org/p/ags/aaea05/19574.html
   My bibliography  Save this paper

Strategic Interaction and Spatial Multiplier Effects in Local Growth Control Policies: The California Housing Market

Author

Listed:
  • Waldorf, Brigitte S.
  • Byun, Pillsung
  • Florax, Raymond J.G.M.

Abstract

Since the 1970s, growth controls spread across many metropolitan regions in the United States. Several studies address the effects of local growth controls on housing markets, particularly its price effect, which is induced by rising construction cost, constrained housing supply, improved amenities, and market reorientation of homebuilders. However, only few studies explicitly address inter-jurisdictional spatial spillovers and strategic interaction of policy-makers of different jurisdictions in the design of growth control policies. This study focuses on two housing market outcomes, supply of new housing and market orientation, and utilizes a spatial econometric framework to systematically investigate local and global spatial spillovers giving rise to spatial multiplier effects. Preliminary results suggest that market orientation of new home building is primarily influenced by population growth and building permit caps, with positive spillovers at the local level only. For the supply of new housing, however, the models seem to suggest positive global spillover effects. However, there is additional indication of a potential relevance of including spatial heterogeneity in the model specification. Specifically, a north-south disparity or a coastal-inland disparity may have non-negligible impacts with concurrent implications for policy-making.

Suggested Citation

  • Waldorf, Brigitte S. & Byun, Pillsung & Florax, Raymond J.G.M., 2005. "Strategic Interaction and Spatial Multiplier Effects in Local Growth Control Policies: The California Housing Market," 2005 Annual meeting, July 24-27, Providence, RI 19574, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea05:19574
    DOI: 10.22004/ag.econ.19574
    as

    Download full text from publisher

    File URL: http://ageconsearch.umn.edu/record/19574/files/sp05wa10.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Kenneth T. Rosen & Lawrence F. Katz, 1981. "Growth Management and Land use Controls: The San Francisco Bay Area Experience," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 9(4), pages 321-344, December.
    2. Mayer, Christopher J. & Somerville, C. Tsuriel, 2000. "Land use regulation and new construction," Regional Science and Urban Economics, Elsevier, vol. 30(6), pages 639-662, December.
    3. C. Tsuriel Somerville, 1999. "The Industrial Organization of Housing Supply: Market Activity, Land Supply and the Size of Homebuilder Firms," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 27(4), pages 669-694, December.
    4. Larry D. Singell & Jane H. Lillydahl, 1990. "An Empirical Examination of the Effect of Impact Fees on the Housing Market," Land Economics, University of Wisconsin Press, vol. 66(1), pages 82-92.
    5. Florax, Raymond & Folmer, Henk, 1992. "Specification and estimation of spatial linear regression models : Monte Carlo evaluation of pre-test estimators," Regional Science and Urban Economics, Elsevier, vol. 22(3), pages 405-432, September.
    6. Katz, Lawrence & Rosen, Kenneth T, 1987. "The Interjurisdictional Effects of Growth Controls on Housing Prices," Journal of Law and Economics, University of Chicago Press, vol. 30(1), pages 149-160, April.
    7. Schwartz, Seymour I. & Hansen, David E. & Green, Richard, 1981. "Suburban growth controls and the price of new housing," Journal of Environmental Economics and Management, Elsevier, vol. 8(4), pages 303-320, December.
    8. Pillsung Byun & Brigitte S. Waldorf & Adrian X. Esparza, 2005. "Spillovers and Local Growth Controls: An Alternative Perspective on Suburbanization," Growth and Change, Wiley Blackwell, vol. 36(2), pages 196-219, June.
    9. Thorson, James A., 1997. "The Effect of Zoning on Housing Construction," Journal of Housing Economics, Elsevier, vol. 6(1), pages 81-91, March.
    10. Henry O. Pollakowski & Susan M. Wachter, 1990. "The Effects of Land-Use Constraints on Housing Prices," Land Economics, University of Wisconsin Press, vol. 66(3), pages 315-324.
    11. Brueckner, Jan K., 1998. "Testing for Strategic Interaction Among Local Governments: The Case of Growth Controls," Journal of Urban Economics, Elsevier, vol. 44(3), pages 438-467, November.
    12. Ned Levine, 1999. "The Effects of Local Growth Controls on Regional Housing Production and Population Redistribution in California," Urban Studies, Urban Studies Journal Limited, vol. 36(12), pages 2047-2068, November.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Public Economics;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea05:19574. 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: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/aaeaaea.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.