Housing Constraints and Spatial Misallocation
By Chang-tai Hsieh, Enrico Moretti. American Economic Journal: Macroeconomics, 2019
623 citations recorded by the source corpus.
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 36 percent from 1964 to 2009. (JEL E23, J24, J31, R23, R31)
Subfields: Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/c0c904c7ff88e6a7d4ae298beff1420ae0ffa459
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Citations in the corpus
- How Close Is Close? The Spatial Reach of Agglomeration Economies (2020, background): “Hsieh and Moretti (2019) present a quantitative model of agglomeration in order to assess the welfare consequences of land use regulation.”
- What Can Be Learned from Spatial Economics? (2019, neutral): “Even more surprising, Hsieh and Moretti (2019) find that lowering constraints on the housing supply in New York, San Francisco, and San Jose to the level of the median American city from 1964 to 2009 would increase the US GDP by 8.9 percent , an astronomical number.”
- Optimal Spatial Policies, Geography, and Sorting* (2018, neutral): “4 we show that the analysis would be the same assuming free entry of producers of differentiated varieties under monopolistic competition as in the standard Krugman (1980) model. The key reason why this equivalence holds is that under CES preferences the number of producers Mj and the bilateral trad”
- The Aggregate Productivity Effects of Internal Migration: Evidence from Indonesia (2017, neutral): “Column 3 in table 5 shows that if we do not account for selection, we understate gains by 40 percent.”
- When Do Renters Behave Like Homeowners? High Rent, Price Anxiety, and NIMBYism (2018, background): “Hsieh and Moretti (2017) argue that restrictions on new supply decreasedU.”
- Place-Based Policies and Spatial Disparities across European Cities (2020, neutral): “8 For the United States, Hsieh and Moretti (2019)”