Emily Hamilton on the Current State of the U.S. Housing Market and Solutions for Reform
Macro Musings with David Beckworth
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How Much GDP Growth Have We Lost Because of Land Use Restrictions?
emily, i want to go back to the first point you raised, about productivity, being able to work in a city that fits your talents and would make you more productive. There is a well known economist named inricki moretti who argues that inability for talent to match on to cities where they be most productive had a huge cost on g d p. How much g d p have we lost, according to his work, because of these housing constraints? They estimate that g d p would be about nine % larger to day if the most productive cities reduced their land use restrictions down to a level of restriction that would match the mediun american city,. That would increase us. G
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