Bombs, boundaries and buildings

Hans Koster, Jos van Ommeren () and Piet Rietveld

Regional Science and Urban Economics, 2012, vol. 42, issue 4, 631-641

Abstract: Many cities apply planning policies to protect a valuable building stock. These policies may have adverse side-effects. We aim to estimate the costs of within-city regulatory restrictions for house owners. To avoid endogeneity issues with respect to supply restrictions, we employ a regression-discontinuity approach using a World War II bombing boundary within the city of Rotterdam. Conditional on amenities and housing attributes, in the bombed area (where fewer restrictions apply) house prices are about 10% higher. This implies regulatory costs of about 0.72millionEuroperhectare for the area under consideration. The results suggest that house owners' benefits should be substantial to compensate for the costs of additional restrictions.

Keywords: Housing supply restrictions; Discontinuity design; Historic amenities; Bombing (search for similar items in EconPapers)
JEL-codes: R30 R38 R52 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (27)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:42:y:2012:i:4:p:631-641

DOI: 10.1016/j.regsciurbeco.2012.02.007

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