What is the counterfactual permitting rate?A measure of how relaxed permitting is in the city under the counterfactual. Higher means more relaxed, so the city facilitates more housing construction.
What's the difference between population-weighted and incumbent-weighted consumption?Incumbent-weighted consumption is Duranton and Puga's (2023) measure. A city's original residents receive that city's consumption (income minus commuting and housing costs). Newcomers and rural residents receive rural consumption, because the permitting cost newcomers pay absorbs the difference. Duranton and Puga treat that cost as a pure loss (delay, compliance and similar costs), so nobody receives it. Population-weighted consumption credits every city resident with their city's consumption. That is what aggregate consumption would be if permitting costs were instead transfers that stay in the economy, such as land-value gains for owners of land granted permission, or developer contributions. The gap between the two is exactly newcomers' total permitting payments, so they are lower and upper bounds on the aggregate gain.
What is the counterfactual permitting rate?A measure of how relaxed permitting is in the city under the counterfactual. Higher means more relaxed, so the city facilitates more housing construction.
What's the difference between population-weighted and incumbent-weighted consumption?Incumbent-weighted consumption is Duranton and Puga's (2023) measure. A city's original residents receive that city's consumption (income minus commuting and housing costs). Newcomers and rural residents receive rural consumption, because the permitting cost newcomers pay absorbs the difference. Duranton and Puga treat that cost as a pure loss (delay, compliance and similar costs), so nobody receives it. Population-weighted consumption credits every city resident with their city's consumption. That is what aggregate consumption would be if permitting costs were instead transfers that stay in the economy, such as land-value gains for owners of land granted permission, or developer contributions. The gap between the two is exactly newcomers' total permitting payments, so they are lower and upper bounds on the aggregate gain.
What is the counterfactual permitting rate?A measure of how relaxed permitting is in the city under the counterfactual. Higher means more relaxed, so the city facilitates more housing construction.
What is the counterfactual permitting rate?A measure of how relaxed permitting is in the city under the counterfactual. Higher means more relaxed, so the city facilitates more housing construction.
What is the counterfactual permitting rate?A measure of how relaxed permitting is in the city under the counterfactual. Higher means more relaxed, so the city facilitates more housing construction.
What is the counterfactual permitting rate?A measure of how relaxed permitting is in the city under the counterfactual. Higher means more relaxed, so the city facilitates more housing construction.
What is the counterfactual permitting rate?A measure of how relaxed permitting is in the city under the counterfactual. Higher means more relaxed, so the city facilitates more housing construction.