Abstract

A model of equilibrium rent determination is developed to incorporate both the scarcity and amenity effects associated with limits to new housing construction in a non-open city where demand for housing has increased. Implications of the model are tested with data from California cities to determine which factors increase the probability that a local growth control ballot measure is proposed, or passed. It is found that limits to new housing development occur with greater frequency in communities where fewer substitute cities exist and where certain socioeconomic characteristics predominate, but not where current population densities, or growth, are high.

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