In spite of a growing recognition of the importance of supply conditions for the level and volatility of house prices, empirical work on housing supply outside the US is scarce. This paper considers various measures of housing supply in the Netherlands, where real house prices have roughly...

How should urban containment and the diversion of households to nearby residential areas be evaluated from a welfare economic perspective? Assuming the existence of a negative externality of city size, we develop a concise general equilibrium model for a mother city and a satellite. This...

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...

We present a modified open monocentric city model that assumes that land is available for conversion into new housing throughout the city. The model predicts that positive local income shocks (i) increase the city’s share of multi-family housing in new construction and (ii) lead to the...

How should urban containment and the diversion of households to nearby residential areas be evaluated from a welfare economic perspective? Assuming the existence of a negative externality of city size, we develop a concise general equilibrium model for a mother city and a satellite. This...

Foregone benefits of the open space that is sacrificed through urban sprawl are hard to quantify. We obtain a simple benchmark measure by introducing a demand for trips beyond the urban boundary into the monocentric city model. The externality arises from the increase in travel costs that...

We present a modified open monocentric city model that assumes that land is available for conversion into new housing throughout the city. The model predicts that positive local income shocks (i) increase the city's share of multi-family housing in new construction and (ii) lead to the...

type="main" <title type="main">ABSTRACT</title> <p>Foregone benefits of the open space that is sacrificed through urban sprawl are hard to quantify. We obtain a simple benchmark measure by introducing a demand for trips beyond the urban boundary into the monocentric city model. The externality arises from the increase in...</p>

In many metropolitan areas around the world there exist binding restrictions on residential development that are regularly adjusted to the increasing housing needs of the urban population. Such adjustments of direct land use regulations often give rise to significant scarcity rents. These rents...

The quality of newly constructed housing affects the character and possibly the future prosperity of locations for decades. Arguably, the quality of housing also causes externalities to residents in surrounding areas. Given the seeming importance of housing quality it is surprising how little is...