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Abstract

The purpose of this study is to identify and measure the impact of various factors that affect the economic performance of micropolitan statistical areas in the U.S. Specifically, it is hypothesized that micropolitan area economic growth is highly related to locational amenities, primarily the housing supply and the regulatory environment. The Glaeser and Tobio (2008) growth model is used to obtain estimates for the amenity growth effect, productivity growth effect, and the housing supply growth effect for a cross-section of micropolitan statistical areas for the 1990-2010 period. A proxy variable for the regulatory environment is also developed. The findings indicate that a flexible housing supply and regulatory environment are significant determinants of the growth of micropolitan areas during the period under study.

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