Housing Constraints and Spatial Misallocation
58 Pages Posted: 11 May 2015 Last revised: 20 Apr 2024
There are 3 versions of this paper
Why Do Cities Matter? Local Growth and Aggregate Growth
Kreisman Working Papers Series in Housing Law and Policy No. 30
Number of pages: 68
Posted: 21 Nov 2015
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Housing Constraints and Spatial Misallocation
NBER Working Paper No. w21154
Number of pages: 58
Posted: 11 May 2015
Last Revised: 21 Apr 2023
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Why Do Cities Matter? Local Growth and Aggregate Growth
CEPR Discussion Paper No. DP10604
Number of pages: 65
Posted: 19 May 2015
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Date Written: May 2015
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.
Suggested Citation: Suggested Citation
Hsieh, Chang-Tai and Moretti, Enrico, Housing Constraints and Spatial Misallocation (May 2015). NBER Working Paper No. w21154, Available at SSRN: https://ssrn.com/abstract=2604835
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