Abstract
| Original language | English |
|---|---|
| Pages (from-to) | 358-405 |
| Journal | Economic Journal |
| Volume | 126 |
| Issue number | 591 |
| DOIs | |
| Publication status | Published - 2016 |
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The Impact of Supply Constraints on House Prices in England. / Hilber, C.A.L.; Vermeulen, W.
In: Economic Journal, Vol. 126, No. 591, 2016, p. 358-405.Research output: Contribution to Journal › Article › Academic › peer-review
TY - JOUR
T1 - The Impact of Supply Constraints on House Prices in England
AU - Hilber, C.A.L.
AU - Vermeulen, W.
PY - 2016
Y1 - 2016
N2 - We test the theoretical prediction that house prices respond more strongly to changes in local earnings in places with tight supply constraints using a unique panel dataset of 353 Local Planning Authorities in England between 1974 and 2008. Exploiting exogenous variation from a policy reform, vote shares and historical density to identify the endogenous constraints-measures, we find that: regulatory constraints have a substantive positive impact on the house price-earnings elasticity; the effect of constraints due to scarcity of developable land is largely confined to highly urbanised areas; and uneven topography has a quantitatively less meaningful impact.
AB - We test the theoretical prediction that house prices respond more strongly to changes in local earnings in places with tight supply constraints using a unique panel dataset of 353 Local Planning Authorities in England between 1974 and 2008. Exploiting exogenous variation from a policy reform, vote shares and historical density to identify the endogenous constraints-measures, we find that: regulatory constraints have a substantive positive impact on the house price-earnings elasticity; the effect of constraints due to scarcity of developable land is largely confined to highly urbanised areas; and uneven topography has a quantitatively less meaningful impact.
U2 - 10.1111/ecoj.12213
DO - 10.1111/ecoj.12213
M3 - Article
VL - 126
SP - 358
EP - 405
JO - Economic Journal
JF - Economic Journal
SN - 0013-0133
IS - 591
ER -