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Quantifying Land Use Regulation and its Determinants - Ease of Residential Development across Swiss Municipalities

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  • Simon B chler, Maximilian v. Ehrlich

Abstract

We analyze land use regulation and the determinants thereof across the majority of Swiss municipalities. Based on a comprehensive survey, we construct several indices on the ease of local residential development, which capture various aspects of local regulation and land use coordination across jurisdictions. The indices provide harmonized information about what local regulation entails and the local regulatory environment across municipalities. Our analysis shows that, among others, historical building density, socio-demographic factors, local taxes, cultural aspects, and the quality of natural amenities are important determinants of local land-use regulation. We test the validity of the index with regard to information about the local refusal rates of development projects and show that the index captures a significant part of the variation in local housing supply elasticities. Based on a machine learning cross-validation model, we impute the values for nonresponding municipalities.

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  • Simon B chler, Maximilian v. Ehrlich, 2021. "Quantifying Land Use Regulation and its Determinants - Ease of Residential Development across Swiss Municipalities," Diskussionsschriften credresearchpaper32, Universitaet Bern, Departement Volkswirtschaft - CRED.
    • Handle: RePEc:rdv:wpaper:credresearchpaper32
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    More about this item

    Keywords

    Local regulation; zoning; housing markets;
    All these keywords.

    JEL classification:

    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • 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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