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Housing Constraints and Spatial Misallocation

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Hsieh, Chang-Tai, Moretti, Enrico·2019·American Economic Journal: Macroeconomics

Abstract

We quantify the amount of spatial misallocation of labor across US cities and its aggregate costs. Misallocation arises because high productivity cities like New York and the San Francisco Bay Area have adopted stringent restrictions to new housing supply, effectively limiting the number of workers who have access to such high productivity. Using a spatial equilibrium model and data from 220 metropolitan areas we find that these constraints lowered aggregate US growth by 36 percent from 1964 to 2009. (JEL E23, J24, J31, R23, R31)

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Authors
Hsieh, C.-T., & Moretti, E.
Venue
American Economic Journal: Macroeconomics
Published
2019-04-01
Volume
11
Issue
2
Pages
1-39
ISSN
  • 1945-7707 (ISSN-L)
  • 1945-7715
OpenAlex
W2614214791
Cited by
638
References
0
FWCI
94.45
Type
journal article
Language
en
Open access
bronze

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