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The impact of supply constraints on house prices in England

Hilber, Christian A. L. ORCID: 0000-0002-1352-495X 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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Identification Number: 10.1111/ecoj.12213

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: 26 Feb 2024 05:42
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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