Estimating the Economic Value of Zoning Reform - American Economic Association
This website uses cookies.
By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device to enhance site navigation and analyze site performance and traffic. For more information on our use of cookies, please see our Privacy Policy.
Accept
Home<br>Journals<br>American Economic Journal: Economic Policy<br>August 2026<br>Estimating the Economic Value of Zoning Reform
American Economic Journal:<br>Economic Policy
ISSN 1945-7731 (Print)<br>ISSN 1945-774X (Online)
About AEJ: Economic PolicyEditors<br>Editorial Policy<br>Annual Report of the Editor<br>Editorial Process: Discussions with the Editors<br>Research Highlights<br>Contact Information
Articles and IssuesCurrent Issue<br>All Issues<br>Forthcoming Articles
Information for Authors and ReviewersSubmission Guidelines<br>Accepted Article Guidelines<br>Style Guide<br>Reviewer Guidelines
Menu
About AEJ: Economic PolicyEditors<br>Editorial Policy<br>Annual Report of the Editor<br>Editorial Process: Discussions with the Editors<br>Research Highlights<br>Contact Information
Articles and IssuesCurrent Issue<br>All Issues<br>Forthcoming Articles
Information for Authors and ReviewersSubmission Guidelines<br>Accepted Article Guidelines<br>Style Guide<br>Reviewer Guidelines
Estimating the Economic Value of Zoning Reform
Santosh Anagol
Fernando Ferreira
Jonah Rexer
American Economic Journal: Economic Policy
vol. 18,<br>no. 3, August 2026
(pp. 235–74)
Download Full Text PDF
Article Information
Abstract
We estimate the economic value of zoning reform in São Paulo, which altered maximum permitted construction along transportation corridors. Developers increased filings for multifamily construction in blocks affected by the reform, leading to more housing supply and lower housing prices in neighborhoods that allow more densification. Our equilibrium model of housing markets estimates an aggregate 1.6 percent increase in housing stock and a 0.4 percent reduction in prices, resulting in large housing wealth transfers from current to future homeowners. The reform produced welfare gains of 0.65 percent of city GDP, mostly due to developer profits and consumer gains from the newly built environment.
Citation
Anagol, Santosh, Fernando Ferreira, and Jonah Rexer.<br>2026.
"Estimating the Economic Value of Zoning Reform."
American Economic Journal: Economic Policy
18 (3):<br>235–74.
DOI: 10.1257/pol.20230542
Choose Format:<br>BibTeX<br>EndNote<br>Refer/BibIX<br>RIS<br>Tab-Delimited
Additional Materials
Replication Package
Supplemental Appendix
Author Disclosure Statement(s)
JEL Classification
G51<br>Household Finance: Household Saving, Borrowing, Debt, and Wealth
O18<br>Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
R11<br>Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
R23<br>Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
R31<br>Housing Supply and Markets
R41<br>Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
R52<br>Regional Government Analysis: Land Use and Other Regulations
Terms of Use
Privacy Policy
Copyright 2026 American Economic Association. All rights reserved.
Follow us: