These implicit assumptions impose all kind of problems. From lack of identification, to assuming that no change in regulations can make prices fall if demand is fixed.

Some are not necessarily issues, but require reflection on whether they are suitable for the policy question of the paper.

8/n

I formalise this argument into seeking to estimate the "Elasticity" and "Baseline" effects of policies.

For example, reducing minimum plot sizes not only reduces the price-demand elasticity (Elasticity effect), but also the cost of supplying the existing units (Baseline Effect).

5/n

New paper alert! 🚨

What are the aggregate effects of NIMBY policies? How much GDP would we gain from building more in productive cities?

I show that how house prices are modelled matters for the answer. Most popular house price functions and microfoundations *underestimate* policy gains! #econsky