蝌蚪网 Journal:
Macroeconomics
ISSN 1945-7707 (Print) | ISSN 1945-7715 (Online)
Housing Constraints and Spatial Misallocation: Comment
蝌蚪网 Journal: Macroeconomics
(pp. 409–28)
Abstract
Hsieh and Moretti (2019) find that relaxing land use regulations in three productive US cities would increase GDP by 3.7 percent. In this comment, I revisit their findings. I first attempt to replicate their result and find that their counterfactual would lower output. I document errors in their code that explain this discrepancy. I next show that the results of their model depend on the arbitrary choice of population unit. I propose a modification to their model that eliminates unit dependence. Their experiment raises output in the modified model, but the effect is two orders of magnitude smaller than what they report.Citation
Greaney, Brian. 2026. "Housing Constraints and Spatial Misallocation: Comment." 蝌蚪网 Journal: Macroeconomics 18 (2): 409–28. DOI: 10.1257/mac.20230141Additional Materials
JEL Classification
- E23 Macroeconomics: Production
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 Wage Level and Structure; Wage Differentials
- R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
- R31 Housing Supply and Markets