tag:blogger.com,1999:blog-582368152716771238.post3801769544587677595..comments2024-03-29T07:18:14.271-05:00Comments on The Grumpy Economist: YIMBY papersJohn H. Cochranehttp://www.blogger.com/profile/04842601651429471525noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-582368152716771238.post-48935067834314940192020-10-18T17:05:01.469-05:002020-10-18T17:05:01.469-05:00". While the precise outcome depends on the p...". While the precise outcome depends on the parameters used, such calculations suggest that 2 percent of GDP may be an upper bound on the gains from the reallocation of labor"<br /><br />Ed Glaeser. benjhttps://www.blogger.com/profile/11544297406005346095noreply@blogger.comtag:blogger.com,1999:blog-582368152716771238.post-29976391678461609682017-05-25T06:16:59.917-05:002017-05-25T06:16:59.917-05:00German house prices have fallen 10% in real terms ...German house prices have fallen 10% in real terms in the last 30 years. In the UK, they’ve risen 230%. “A key to the story is that German municipal authorities consistently increase housing supply by releasing land for development on a regular basis.” That’s according to a Forbes article: <br /><br />https://www.forbes.com/sites/eamonnfingleton/2014/02/02/in-worlds-best-run-economy-home-prices-just-keep-falling-because-thats-what-home-prices-are-supposed-to-do/#3170e9626ad0Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.comtag:blogger.com,1999:blog-582368152716771238.post-86277134978281452202017-05-23T20:00:27.589-05:002017-05-23T20:00:27.589-05:00I can't speak for the US, but here in NZ (wher...I can't speak for the US, but here in NZ (where house prices, particularly in Auckland, are among the most expensive in the world relative to incomes), it is indeed the 'right-wing' (i.e., economists and the like) who repeatedly and consistently point to land zoning restrictions as the principal source of the problem.<br /><br />The 'left' on the other hand, prefer to attribute it to "excessive immigration", "speculation", "greedy banks" etc etc.Cokerhttps://www.blogger.com/profile/02631288439451432057noreply@blogger.comtag:blogger.com,1999:blog-582368152716771238.post-40994310586755600312017-05-23T14:55:04.406-05:002017-05-23T14:55:04.406-05:00" This is actually a really interesting point... " This is actually a really interesting point to bring up. Just as in environmental Economics where we price the environment in terms of "free" pollination services provided by bees and the value of a nice view by looking at real estate prices, using this same approach I think could prove beneficial when trying to measure the loss of growth. Looking at the statistical shift in businesses started over a period time before and after a specific regulation or regulations could prove of use in trying to quantify the loss of growth. Of course, an econometric model would have to be used and provide a decent amount of variables to measure the true impact that the regulations had on businesses started over the measured period of time. "Fernando Becerranoreply@blogger.comtag:blogger.com,1999:blog-582368152716771238.post-17198909787592501592017-05-23T14:49:23.602-05:002017-05-23T14:49:23.602-05:00This is actually a really interesting point to bri...This is actually a really interesting point to bring up. Just as in environmental Economics where we price the environment in terms of "free" pollination services provided by bees and the value of a nice view by looking at real estate prices, using this same approach i think could prove beneficial when trying to measure loss of growth. Looking at the statistical shift in businesses started over a period time before and after a specific regulation or regulations could prove of use in trying to quantify loss of growth. Of course an econometric model would have to be used and provide a decent amount of variables to measure the true impact that the regulations had on businesses started over the measured period of time. NERhttps://www.blogger.com/profile/12072090677980934403noreply@blogger.comtag:blogger.com,1999:blog-582368152716771238.post-1698275397495946002017-05-23T07:15:36.800-05:002017-05-23T07:15:36.800-05:00See The Cumulative Cost of Regulations: https://ww...See The Cumulative Cost of Regulations: https://www.mercatus.org/publication/cumulative-cost-regulationsAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-582368152716771238.post-37279633680982341042017-05-23T00:12:28.119-05:002017-05-23T00:12:28.119-05:00One of the great economic/policy arguments of the ...One of the great economic/policy arguments of the last decade has been the cause of the lowered rates of growth and productivity increases in the 21st century. Several people, such as Robert Gordon of Northwestern have argued that it is a result of reduced technical innovation. Others have rejected that argument.<br /><br />I have leaned toward theories of institutional sclerosis. To me, the Hsieh, Moretti and Herkenho, Ohanian, Prescott are more evidence for the sclerosis theory. <br /><br />I wonder if anyone has looked at the cost of environmental regulation, or of over investment in the health care sector. Fat Manhttps://www.blogger.com/profile/09554029467445000453noreply@blogger.comtag:blogger.com,1999:blog-582368152716771238.post-83317905856545544672017-05-22T22:11:56.853-05:002017-05-22T22:11:56.853-05:00A hearty congratulations to John Cochrane for post...A hearty congratulations to John Cochrane for posting on property zoning. <br /><br />Would that there were right-wing clarion calls to "end property zoning." Certainly, on any day one can read about the evils of the minimum wage. <br /><br />But a 50% reduction in GDP due to property zoning? Not a topic? <br /><br />I always say, "Yes, let's get rid of the minimum wage. But first, let's get rid of property zoning (including for retail) and the criminalization of push-cart, motorcycle-sidecar and truck-vending."<br /><br />Let urban residents start up their own business, and turn streets into carnivals of capitalism and commerce! <br /><br />Or, "Sure let's get rid of rent control. But first we must end property zoning."<br /><br />Somehow, these memes never make into right-wing land. Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-582368152716771238.post-55372044951035638612017-05-22T16:38:47.236-05:002017-05-22T16:38:47.236-05:00Just another example of the classic American polic...Just another example of the classic American policy pattern -- Subsidies for Demand and Restrictions on Supply. The policy always produces calls for bigger subsidies and more supply restrictions so that the field is not overwhelmed with "destructive competition". I call it SDRS. <br /><br />The NYTimes has noticed "How Homeownership Became the Engine of American Inequality: An enormous entitlement in the tax code props up home prices — and overwhelmingly benefits the wealthy and the upper middle class." By Matthew Desmond on May 9, 2017<br />https://www.nytimes.com/2017/05/09/magazine/how-homeownership-became-the-engine-of-american-inequality.html. <br /><br />Of course the subsiddies are not limited to the tax code. We also have the government guaranteed mortgage market: Fannie Mae, Freddie Mac, Ginnie Mae, FHA. Banking regulations such as the Community Reinvestment Act.<br /><br />Do not forget that SDRS patter also applies in the health care and education spaces. Fat Manhttps://www.blogger.com/profile/09554029467445000453noreply@blogger.com