Urban planning policies and the cost of living in large cities

William Larson, Anthony Yezer and Weihua Zhao ()

Regional Science and Urban Economics, 2022, vol. 96, issue C

Abstract: Using a numerical simulation model to provide a sterile laboratory for studying the long-run effects of both land use and transportation policies, this paper offers two main findings. First, we argue that land use regulations have relatively small effects on the cost of labor in large cities due to location substitution by housing producers and households. Second, we show the compensating differential paid to workers in growing cities is invariant with respect to land use regulation. In the long run, the vast majority of the costs of land use regulations are due to changes to the cost of commuting rather than housing.

Keywords: Zoning regulation; Housing cost; Urban transportation; Standard urban model (search for similar items in EconPapers)
JEL-codes: R30 R31 R38 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:96:y:2022:i:c:s0166046222000424

DOI: 10.1016/j.regsciurbeco.2022.103802

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