Tuesday, May 11, 2010
Boaz Nandwa (American U. Dubai--Business Administration) and Laudo M. Ogura (Grand Valley State--Economics) have posted Do Urban Growth Controls Slow Down Regional Economic Growth? The abstract:
Previous studies indicate that urban growth controls (local land use regulations that attempt to restrict population growth and urban sprawl) have increased housing prices and diverted population growth to uncontrolled cities. As a result, when growth controls become widespread in a region, new workers (young and newcomers) might struggle to find adequate housing.
Considering this potential restriction imposed on the growth of the regional labor supply, we investigate whether the adoption of residential land use regulations have affected regional economic growth in recent years (2001-2008). In the regressions, regulatory indexes developed by other authors are used as proxies for the strictness and prevalence of regulations. Results suggest that aggregate production and population have grown at slower rates in highly regulated metropolitan areas. Per capita production, on the other hand, does not seem to have been affected.