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Must-Read: Chang-Tai Hsieh and Enrico Moretti: Housing Constraints and Spatial Misallocation

Must-Read: Chang-Tai Hsieh and Enrico Moretti: Housing Constraints and
Spatial Misallocation: “We quantify the amount of spatial misallocation of labor across US cities and its aggregate costs… http://eml.berkeley.edu//~moretti/growth.pdf

…Misallocation arises because high productivity cities like New York and the San Francisco Bay Area have adopted stringent restrictions to new housing supply, effectively limiting the number of workers who have access to such high productivity. Using a spatial equilibrium model and data from 220 metropolitan areas we find that these constraints lowered aggregate US growth by more than 50% from 1964 to 2009…

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Must-Read: Chang-Tai Hsieh and Enrico Moretti: Housing Constraints and Spatial Misallocation

May 20, 2017

AUTHORS:

May 20, 2017

AUTHORS:

U.S. economic mobility trends and outcomes

U.S. income and wealth inequality are no longer increasing, but a return to the equitable levels of the mid-20th century isn’t likely anytime soon