Büchler, Simon; v. Ehrlich, Maximilian (August 2021). Quantifying Land Use Regulation and its Determinants - Ease of Residential Development across Swiss Municipalities (CRED Research Paper 32). Bern: CRED - Center for Regional Economic Development
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We analyze land use regulation and the determinants thereof across the majority of
Swiss municipalities. Based on a comprehensive survey, we construct several
indices on the ease of local residential development, which capture various aspects
of local regulation and land use coordination across jurisdictions. The indices
provide harmonized information about what local regulation entails and the local
regulatory environment across municipalities. Our analysis shows that, among
others, historical building density, socio-demographic factors, local taxes, cultural
aspects, and the quality of natural amenities are important determinants of local
land-use regulation. We test the validity of the index with regard to information
about the local refusal rates of development projects and show that the index
captures a significant part of the variation in local housing supply elasticities. Based
on a machine learning cross-validation model, we impute the values for non-responding municipalities.
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