EVENT CANCELLED RSS | How much does anticipation matter? Evidence from anticipated regulation and land prices’
Due to unforeseen circumstances this event has been cancelled
Linda Nøstbakken,a Professor in the Department of Economics at the Norwegian School of Economics (NHH), will be the speaker at this event.
Land prices across administrative boundaries can be useful for estimating the causal effects of local policy. Market anticipation about potential boundary changes can confound identification, so studies often avoid markets where this may arise. We develop an approach to quantify anticipation by separately identifying the causal effect of local policy and the market’s subjective beliefs that administrative boundaries will change. Using land prices and changes to land use regulation boundaries, our estimates indicate that anticipation does matter quantitatively: it increases the welfare cost of the policy by one-quarter and empirical analysis that omits anticipation underestimates this cost by nearly one-half.
This seminar is open to all LSE staff and students. If you are from outside the LSE and would like to attend, please email Gri.Events@lse.ac.uk to register for a place.