打印

作者

Nicholas Kacher Luke Petach

来源

ECONOMIC DEVELOPMENT QUARTERLY,Vol.35,Issue.4

语言

英文

关键字

作者单位

1Scripps College, Claremont, CA, USA;2Jack C. Massey College of Business at Belmont University, Nashville, TN, USA

摘要

This paper examines the impact of changes in housing affordability on regional entrepreneurship. Two-way fixed-effects estimates suggest an increase in the level of house prices in a commuting zone results in a decline in establishment openings as a share of existing establishments—consistent with a crowding-out effect. In contrast, an increase in the growth rate of house prices results in a small (although not always statistically significant) increase in establishment openings—consistent with a positive wealth effect from capital gains. To address endogeneity concerns, the authors adopt two alternative instruments for commuting zone house-price growth: a measure of local real estate lending and a geography-based measure of the elasticity of local housing supply. They extend the analysis using restricted-use establishment-level microdata from the Quarterly Census of Employment and Wages (QCEW) for the state of Colorado. Results from the QCEW data are consistent with those from the commuting zone sample.