Cities, Aggregate Welfare, and Growth

Katja Gehr and Michael Pflüger

No 11716, CESifo Working Paper Series from CESifo

Abstract: This paper explores the macroeconomic consequences of regulatory barriers in housing markets. We take a European perspective, allowing us to offer novel facts, theory, and methodology. Our focus is on Germany, a compelling case exemplifying key characteristics unique to European city systems. To take our model to the data, we estimate its structural equations for the population elasticities of urban benefits and costs using rich micro-data. The quantified model receives strong support from several sources of independent evidence. We study the effects of a counterfactual reduction of land-use regulations on aggregate welfare and evaluate the effect of cities on growth.

Keywords: city systems; urban growth; urban benefits and costs; land-use regulations; amenities; location fundamentals (search for similar items in EconPapers)
JEL-codes: C52 D24 R12 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.cesifo.org/DocDL/cesifo1_wp11716.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_11716

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().