The impact of supply constraints on house prices in England

Hilber, Christian A. L. and Vermeulen, Wouter (2016) The impact of supply constraints on house prices in England. The Economic Journal, 126 (591). 358 - 405. ISSN 0013-0133

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Abstract

We test the theoretical prediction that house prices respond more strongly to changes in local earnings in places with tight supply constraints using a unique panel dataset of 353 Local Planning Authorities in England between 1974 and 2008. Exploiting exogenous variation from a policy reform, vote shares and historical density to identify the endogenous constraints‐measures, we find that: regulatory constraints have a substantive positive impact on the house price‐earnings elasticity; the effect of constraints due to scarcity of developable land is largely confined to highly urbanised areas; and uneven topography has a quantitatively less meaningful impact.

Item Type:	Article
Official URL:	https://academic.oup.com/ej
Additional Information:	© 2014 The Authors
Divisions:	Geography & Environment Spatial Economics Research Centre
Subjects:	H Social Sciences > HC Economic History and Conditions
Date Deposited:	21 Jul 2014 09:18
Last Modified:	23 Nov 2023 04:54
Funders:	National Housing Planning Advice Unit (NHPAU) Research Innovation Fund, National Housing Planning Advice Unit (NHPAU) Research Innovation Fund
URI:	http://eprints.lse.ac.uk/id/eprint/58017

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