Broken market or broken policy? The unintended consequences of restrictive planning

Paul Cheshire

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This paper summarises the evidence from recent research relating to the British Planning system's impact on the supply of development. Planning serves important economic and social purposes but it is essential to distinguish between restricting development relative to demand in particular places to provide public goods and mitigate market failure in other ways, including ensuring the future ability of cities to expand and maintain a supply of public goods and infrastructure; and an absolute restriction on supply, raising prices of housing and other urban development generally. Evidence is presented that there are at least four separate mechanisms, inbuilt into the British system, which result in a systematic undersupply of land and space for both residential and commercial purposes and that these have had important effects on both our housing market and the wider economy and on welfare more widely defined

Keywords: economic efficiency; housing supply constraints; land use regulation (search for similar items in EconPapers)
JEL-codes: R13 R38 (search for similar items in EconPapers)
Date: 2018-08-01
New Economics Papers: this item is included in nep-ure
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Citations: View citations in EconPapers (20)

Published in National Institute Economic Review, 1, August, 2018, 245(1), pp. R9-R19. ISSN: 0027-9501

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http://eprints.lse.ac.uk/90240/ Open access version. (application/pdf)

Related works:
Journal Article: Broken market or broken policy? The unintended consequences of restrictive planning (2018)
Journal Article: Broken Market or Broken Policy? The Unintended Consequences of Restrictive Planning (2018)
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