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Housing Constraints and Spatial Misallocation

Year: 2015

Type: report

Abstract: We quantify the amount of spatial misallocation of labor across US cities and its aggregate costs.Misallocation arises because high productivity cities like New York and the San Francisco Bay Area have adopted stringent restrictions to new housing supply, effectively limiting the number of workers who have access to such high productivity.Using a spatial equilibrium model and data from 220 metropolitan areas we find that these constraints lowered aggregate US growth by more than 50% from 1964 to 2009.

Source: National Bureau of Economic Research

DOI: 10.3386/w21154

Authors: Chang-Tai Hsieh, Enrico Moretti

Institutions: National Bureau of Economic Research, University of Chicago, University of California, Berkeley

Language: English

Topic: Regional Economics and Spatial Analysis

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Sustainable cities and communities, Reduced inequalities, Decent work and economic growth

Open Access status: green

OpenAlex ID: W2937909294

Cites: 64

Cited by: 65

Related to: 10