Growth and Distributional Impacts of Urban Housing Supply: An Application of Urban Land Use and a CGE Model For Seoul |
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| Authors: | Euijune Kim Jaeuk Ju |
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| Affiliation: | Yonsei University, Seoul, Korea, and Regional Economics Applications Laboratory, University of Illinois, Urbana, IL, USA; Cornell University, Ithaca, NY, USA |
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| Abstract: | This paper assesses economic effects of housing supplies on the urban growth and income distribution of Seoul, using an urban land use and Computable General Equilibrium model of Seoul economy. The simulation shows that the housing development with the conversion of the green or the industrial land uses into the residential land use leads to an increase of the Gross Regional Product by approximately 1% at the worse income inequality. The aggregate welfare effects in terms of Hicksian Compensating Variation range from 1.746 trillion Korean Won to 1.768 trillion Korean Won on a ten-period average, depending on the type of the land conversion. |
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