Analyzing Building Height Restrictions: Predicted Impacts, Welfare Costs, and a Case Study of Bangalore, India

The authors analyze the effects of
building height restrictions, providing a concrete welfare
cost estimate for the city of Bangalore, India. Relying on
several theoretical results, their analysis shows that the
welfare cost imposed on its residents by Bangalore's
building height restriction ranges between 3 and 6 percent
of household consumption. This burden represents a
significant share of individual resources, and its presence
may push many marginal households into poverty.