Abstract 1

1. Introduction 1

2. Housing policy in the UK 5

3. Data 7
 3.1 Trends in house prices and housing supply 7

4. Local housing supply elasticities 9
 4.1 Housing supply elasticity estimates 12
 4.2 Validity of the shift-share instrument 14
 4.3 Heterogeneity in supply elasticities 16
 4.4 The effects of local supply constraints on housing supply elasticities 18
 4.5 Accounting for housing type and size 21
 4.6 Local variation in supply elasticities 23
 4.7 Supply constraints and housing affordability 24
 4.8 Residual analysis 25

5. Conclusion 26

References 27



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