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> And second, the authors describe the curious fact that producers located in more-productive areas do not grow at expected rates. Indeed, rather than construct
by thatfrenchguy 4y ago
> And second, the authors describe the curious fact that producers located in more-productive areas do not grow at expected rates. Indeed, rather than construction inputs flowing to areas where they are more productive, the activity share of these areas either stagnates or even falls. The authors suggest that this problem with allocative efficiency may accentuate the aggregate productivity problem for the industry.
This is a nice way to say "NIMBYs have made sure building anything in areas where there are jobs is a herculean task"