A structural model finds large gains from easing California's housing constraints.

The counterfactual shifts employment toward California and raises modeled national output growth.

FROM THE PAPERFigure 4 · Modeled California deregulation

Source: Herkenhoff, Ohanian & Prescott (2018) · Figure 4; PDF p. 31

Keep in mind: This is a structural-model counterfactual, not an observed reform; magnitudes depend on the model and regulatory calibration.

Share the evidence

The counterfactual shifts employment toward California and raises modeled national output growth.

Source: Herkenhoff, Ohanian & Prescott (2018)
Figure: Figure 4 · Modeled California deregulation · Figure 4; PDF p. 31
Keep in mind: This is a structural-model counterfactual, not an observed reform; magnitudes depend on the model and regulatory calibration.

Too many people are chasing too few homes. See why—and what communities can do about it.