Land-use restrictions impose a measurable housing-cost penalty.

Across calibrated assumptions, the model attributes a positive cost wedge to regulatory restrictions.

FROM THE PAPERFigure 4 · Estimated effects of restrictions on housing productivity

Source: Albouy & Ehrlich (2018) · Figure 4; PDF p. 44

Keep in mind: The magnitude comes from a structural model and depends on assumptions about costs, substitution, amenities, and location choices.

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Across calibrated assumptions, the model attributes a positive cost wedge to regulatory restrictions.

Source: Albouy & Ehrlich (2018)
Figure: Figure 4 · Estimated effects of restrictions on housing productivity · Figure 4; PDF p. 44
Keep in mind: The magnitude comes from a structural model and depends on assumptions about costs, substitution, amenities, and location choices.

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