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Does Land Use Planning shape Regional Economies?

Author

Listed:
  • Wouter Vermeulen

    (CPB, The Hague, and VU University Amsterdam)

  • Jos van Ommeren

    (Vrije Universiteit Amsterdam)

Abstract

Why has job growth over the past decades been weaker in the Dutch Randstad area than in surrounding regions? In a simultaneous equations analysis, we find that employment adjusts to the regional supply of labour. Net internal migration is predominantly determined by regional housing supply and not by employment growth. Growth of the regional housing stock responds only moderately to changes in the number of people and jobs. This lack of responsiveness to demand conditions is plausibly related to restrictions on residential development, implying that the regional distribution of economic activity in the Netherlands reflects land use planning decisions. This discussion paper resulted in a publication in the Journal of Housing Economics , 2009, 18(4), 294-310.

Suggested Citation

  • Wouter Vermeulen & Jos van Ommeren, 2007. "Does Land Use Planning shape Regional Economies?," Tinbergen Institute Discussion Papers 08-004/3, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20080004
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    More about this item

    Keywords

    housing supply; land use regulation; regional labour markets; regional development;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

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