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Quantifying Land Use Regulation and its Determinants - Ease of Residential Development across Swiss Municipalities

Maximilian v. Ehrlich Simon Büchler
Authors registered in the RePEc Author Service: Maximilian von Ehrlich ()

Diskussionsschriften from Universitaet Bern, Departement Volkswirtschaft - CRED

Abstract: We analyze land use regulation and the determinants thereof across the majority of Swiss municipalities. Based on a comprehensive survey, we construct several indices on the ease of local residential development, which capture various aspects of local regulation and land use coordination across jurisdictions. The indices provide harmonized information about what local regulation entails and the local regulatory environment across municipalities. Our analysis shows that, among others, historical building density, socio-demographic factors, local taxes, cultural aspects, and the quality of natural amenities are important determinants of local land-use regulation. We test the validity of the index with regard to information about the local refusal rates of development projects and show that the index captures a significant part of the variation in local housing supply elasticities. Based on a machine learning cross-validation model, we impute the values for nonresponding municipalities.

Keywords: Local regulation; zoning; housing markets (search for similar items in EconPapers)
JEL-codes: R1 R14 R31 R52 (search for similar items in EconPapers)
Date: 2021-08
New Economics Papers: this item is included in nep-big, nep-cmp and nep-ure
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