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Dropping the Geographic-Constraints Variable Makes Only a Minor Difference: Reply to Cox

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  • Haifang Huang
  • Yao Tang

Abstract

Cox (2010) raises the concern that the regressions in Huang and Tang (2010) may underestimate the effect of regulations on housing prices by including both a measure of geographic constraints and a measure of regulatory constraints on the right-hand side. We respond that omitting geographic constraints in our regressions may overestimate the effect of regulations. Empirically, we show that removing the geography variable from our regressions causes only minor increases in the estimated effects of regulation.

Suggested Citation

  • Haifang Huang & Yao Tang, 2011. "Dropping the Geographic-Constraints Variable Makes Only a Minor Difference: Reply to Cox," Econ Journal Watch, Econ Journal Watch, vol. 8(1), pages 28-32, January.
    • Handle: RePEc:ejw:journl:v:8:y:2011:i:1:p:28-32
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    References listed on IDEAS

    as
    1. Wendell Cox, 2011. "Constraints on Housing Supply: Natural and Regulatory," Econ Journal Watch, Econ Journal Watch, vol. 8(1), pages 13-27, January.
    2. Huang, Haifang & Tang, Yao, 2012. "Residential land use regulation and the US housing price cycle between 2000 and 2009," Journal of Urban Economics, Elsevier, vol. 71(1), pages 93-99.
    3. Joseph Gyourko & Albert Saiz & Anita Summers, 2008. "A New Measure of the Local Regulatory Environment for Housing Markets: The Wharton Residential Land Use Regulatory Index," Urban Studies, Urban Studies Journal Limited, vol. 45(3), pages 693-729, March.
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    Cited by:

    1. Wendell Cox, 2011. "Constraints on Housing Supply: Natural and Regulatory," Econ Journal Watch, Econ Journal Watch, vol. 8(1), pages 13-27, January.
    2. Anundsen, André Kallåk & Heebøll, Christian, 2013. "Supply Restrictions, Subprime Lending and Regional US Housing Prices," Memorandum 04/2013, Oslo University, Department of Economics.

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    More about this item

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis

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