Land Scarcity and Urban Density within Cities

67 Pages Posted: 5 Nov 2020

See all articles by Melanie Krause

Melanie Krause

University of Hamburg - Department of Economics

André Seidel

University of Bergen, Department of Economics

Date Written: 2020

Abstract

This paper studies how limitations on land suitable for development affect within-city variation in urban density and its three components: crowding, residential coverage, and building height. We use the high variation in geographical obstacles − such as steep land slopes and the presence of water bodies within Norwegian cities − as exogenous sources of development limitations. We show that such constraints can create scarcity of certain types of land. Scarcer land types have higher urban density which arises mostly from higher buildings. The effect operates through the heterogeneous citywide supply of land types, rather than through local geography.

Keywords: urban density, building heights, geography, neighborhoods, inner-city differences

JEL Classification: R230, R310, R210, C800

Suggested Citation

Krause, Melanie and Seidel, André, Land Scarcity and Urban Density within Cities (2020). CESifo Working Paper No. 8660, Available at SSRN: https://ssrn.com/abstract=3725299

Melanie Krause (Contact Author)

University of Hamburg - Department of Economics ( email )

Von-Melle-Park 5
room 2128 C rise
Hamburg, 20146
Germany

HOME PAGE: http://www.melanie-krause.de

André Seidel

University of Bergen, Department of Economics ( email )

Muséplassen 1
N-5008 Bergen, +47 55 58
Norway

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