A Model for Estimating the Economic Effects of Changes in Permitting Requirements: Working Paper 2026-10

William Swanson

No 62517, Working Papers from Congressional Budget Office

Abstract: This paper describes a structural model for estimating how changes in permitting requirements affect private investment. The model's framework is a representative sector composed of projects that are identical at the outset and must undergo an uncertain permitting process before production can begin. Permitting delays and outcomes are governed by idiosyncratic shocks that generate uncertainty in both the probability of a project's approval and the timing of a project's completion. The model's framework shows how longer or more uncertain permitting

JEL-codes: D24 E22 Q58 R38 (search for similar items in EconPapers)
Date: 2026-07-29
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