R38 - Production Analysis and Firm Location: Government PolicyNávrat zpět

The aim of the article is to quantify the implicit costs of land use regulations on the prices of new housing (flats and single-family homes) in Prague, Brno, Pilsen and Olomouc during the period 2013-2020. The main method is based on a comparison of new housing prices with construction costs. Furthermore, in the case of single-family homes, a hedonic model is constructed to determine the intrinsic value of land without regulation effects. The research concludes that the costs of regulation are considerable and increasing over time. The results show that the effects are more pronounced on flat markets compared to single-family home markets, the construction of which is subject to simplified permitting processes. The highest level of burden is identified on the flat market in Prague, where regulation can explain up to 44% of the market price. On the contrary, the price of single-family homes in Olomouc approximately corresponds to the sum of construction costs and the value of the land.

The article deals with structural factors affecting decisions about the provision of services in large Slovak cities. In addition to introducing an economic model based on transaction cost theory, models of political decision making regarding the provision of services by cities (ideological model, public choice theory and political risk-aversion model) are described. The article concentrates upon decisions regarding the provision of seven selected services in eight major Slovak cities. In addition to collecting data on the means of providing the selected services, relevant decision makers about the perceived asset specificity and about the measurability of selected services have been interviewed. The findings partly confirm economic hypotheses about the provision of public services, which suggest that oursourcing is expected if the services to be provided are easily measurable. The findings are also consistent with models based on political decision-making, but do not allow to pinpoint any of the political models as the facts are consistent with all three of them.