Regulation and California's Boom and Bust

62 Pages Posted: 30 Jun 2016  

Kristoffer (Kip) Jackson

Government of the United States of America - Office of the Comptroller of the Currency (OCC)

Date Written: January 15, 2016

Abstract

Using data from a survey of top local land-use officials in California, this paper provides a measure of both local regulatory stringency and the degree to which geographic constraints inhibit local development. After exploring differences in regulatory patterns across the state, the index is applied to a model of housing prices. While regulation did not play a meaningful role in the recent housing market boom and bust in California, this paper finds that where housing demand increased through the expansion of subprime lending, geographic constraints exacerbated the run-up and subsequent crash of local housing prices.

Keywords: Land-use regulation, Zoning, Housing supply elasticity, Housing market

JEL Classification: R31, R52, R58

Suggested Citation

Jackson, Kristoffer (Kip), Regulation and California's Boom and Bust (January 15, 2016). Available at SSRN: https://ssrn.com/abstract=2802074 or http://dx.doi.org/10.2139/ssrn.2802074

Kristoffer Jackson (Contact Author)

Government of the United States of America - Office of the Comptroller of the Currency (OCC) ( email )

400 7th Street SW
Washington, DC 20219
United States
949.333.9536 (Phone)

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