https://www.nber.org/system/files/working_papers/w21154/w21154.pdf https://www.nber.org/system/files/working_papers/w21154/w211... We quantify the amount of sp

https://www.nber.org/system/files/working_papers/w21154/w21154.pdf https://www.nber.org/system/files/working_papers/w21154/w211... We quantify the amount of spatial misallocation of labor across US cities and its aggregate costs. Misallocation arises because high productivity cities like New York and the San Francisco Bay Area have adopted stringent restrictions to new housing supply, effectively limiting the number of workers who have access to such high productivity. Using a spatial equilibrium model and data from 220 metropolitan areas we find that these constraints lowered aggregate US growth by more than 50% from 1964 to 2009. We can collectively choose to dramatically increase real material resources for a large proportion of the population, including teachers, by liberalizing housing laws. https://worksinprogress.co/issue/the-housing-theory-of-everything https://worksinprogress.co/issue/the-housing-theory-of-every...