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Residential Land Use Regulation and the US Housing Price Cycle Between 2000 and 2009

Author

Listed:
  • Huang, Haifang

    () (University of Alberta, Department of Economics)

  • Tang, Yao

    () (Department of Economics, Bowdoin College)

Abstract

In a sample covering more than 300 cities in the US between January 2000 and July 2009, we find that more restrictive residential land use regulations and geographic land constraints are linked to larger booms and busts in housing prices. The natural and man-made constraints also amplify price responses to an initial positive mortgage-credit supply shock, leading to greater price increases in the boom and subsequently bigger losses.

Suggested Citation

  • Huang, Haifang & Tang, Yao, 2010. "Residential Land Use Regulation and the US Housing Price Cycle Between 2000 and 2009," Working Papers 2010-11, University of Alberta, Department of Economics, revised 01 Nov 2010.
  • Handle: RePEc:ris:albaec:2010_011
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    References listed on IDEAS

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    More about this item

    Keywords

    residential land use regulation; credit expansion; housing prices;

    JEL classification:

    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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