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The Geographic Determinants of Housing Supply *

Saiz, Albert·2010·Quarterly Journal of Economics

Abstract

I process satellite-generated data on terrain elevation and presence of water bodies to precisely estimate the amount of developable land in U.S. metropolitan areas. The data show that residential development is effectively curtailed by the presence of steep-sloped terrain. I also find that most areas in which housing supply is regarded as inelastic are severely land-constrained by their geography. Econometrically, supply elasticities can be well characterized as functions of both physical and regulatory constraints, which in turn are endogenous to prices and demographic growth. Geography is a key factor in the contemporaneous urban development of the United States.

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Crossref · 10.1162/qjec.2010.125.3.1253

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Metadata

Authors
Saiz, A.
Venue
Quarterly Journal of Economics
Published
2010-08
Volume
125
Issue
3
Pages
1253-1296
ISSN
  • 0033-5533
  • 1531-4650
Cited by
1,793
References
0
Language
en

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