IDEAS home Printed from https://ideas.repec.org/p/cep/cepdps/dp1990.html
   My bibliography  Save this paper

Why delay? Understanding the construction lag, aka the build out rate

Author

Listed:
  • Michael Ball
  • Paul Cheshire
  • Christian A. L. Hilber
  • Xiaolun Yu

Abstract

We explore the determinants of the speed of residential development after dwelling construction starts. Using a sample of over 140,000 residential developments in England from 1996 to 2015 and employing an instrumental variable- and fixed effects-strategy, we find that positive local demand shocks reduce the construction duration in a location with average supply constraints and developer local market power. However, this reduction is less pronounced in areas (i) where local planning is more restrictive, (ii) that are more built-up, and (iii) where competition in the local development sector is lower. We provide a model that rationalises these results. Our findings imply that the slow build out rate in England is the consequence of both market and policy failures.

Suggested Citation

  • Michael Ball & Paul Cheshire & Christian A. L. Hilber & Xiaolun Yu, 2024. "Why delay? Understanding the construction lag, aka the build out rate," CEP Discussion Papers dp1990, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp1990
    as

    Download full text from publisher

    File URL: https://cep.lse.ac.uk/pubs/download/dp1990.pdf
    Download Restriction: no
    ---><---

    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:cep:cepdps:dp1990. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://cep.lse.ac.uk/_new/publications/discussion-papers/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.