Jacob Krimmel

Jacob Krimmel
  • Applied Economics Doctoral Student

Contact Information

Research Interests: urban & real estate economics, public finance, inequality, household finance

Overview

Education:
MPP University of Maryland School of Public Policy, 2012
BA University of Maryland, Economics and Government & Politics, 2011
Work Experience:
Research Assistant, Federal Reserve Board of Governors
Division of Research and Statistics, Microeconomics Surveys Section, 2012-2015

 

Continue Reading

Research

Working Papers:

The Local Residential Land Use Regulatory Environment Across U.S. Housing Markets: Evidence from a New Wharton Index (with Joseph Gyourko and Jonathan Hartley), (submitted to Journal of Urban Economics) NBER Working Paper No. 26573, December 2019 (Online here: https://www.nber.org/papers/w26573)

We report the results from a new survey of local residential land use regulatory regimes for just over 2,450 primarily suburban communities across the United States.  Key stylized facts include:  (1) the local regulatory system remains a complex one of different rules and barriers, as opposed to explicit limits on permitting or production;  (2) the most highly-regulated markets are on the two coasts, with the San Francisco and New York City metropolitan areas having the most restrictive regulation according to our metrics;  (3) being relatively lightly-regulated by our rankings does not mean the place is unregulated:  the bottom quartile of communities in terms of regulatory strictness has two entities that must approve any project needing rezoning and they typically employ density controls in the form of minimum lot size restrictions of up to one-half acre;  (4) the top quartile of communities in terms of regulatory stringency typically has at least three entities that must approve any project, has a more intense level of involvement in the regulatory process by their local officials and residents, has a minimum lot size restriction of more than one-half acre, and is more likely than not to impose open space requirements and impact fee regimes on builders;  project review times also are long, averaging over eight months, which is more than double the time in the least restrictive communities;  (5) comparing our new results to those from a previous survey finds that the housing market bust from the Great Recession did not lead any major market that previously was highly regulated to reverse course and deregulate;  moreover, regulation in coastal markets increased over time.

 

Persistence of Prejudice: Estimating the Long-Term Effects of Redlining

As part of a New Deal initiative to minimize home foreclosure, federal government officials and local real estate professionals graded each neighborhood in America’s largest cities on its perceived credit risk. Using recently digitized maps that precisely show neighborhoods marked with red ink (highest risk) or yellow ink (slightly lower risk), I document that surveyors disproportionately assigned the most restrictive credit rating to neighborhoods with black residents. Nearly 90 percent of African Americans in 1940 lived in a census tract marked for credit redlining. Comparing credit-restricted “redlined” census tracts to adjacent “yellow-lined” tracts, I estimate the long-run effects of redlining on housing and neighborhood outcomes. Between 1940 and 1970, redlining was associated with large differential declines in housing supply and population density; homeownership rates and racial composition did not change differentially from their 1940 baseline though. Once discriminatory lending was outlawed during the mid-1970s, there was moderate convergence in homeownership rates and racial composition. However, housing supply and population density remain persistently lower in formerly credit-restricted census tracts relative to their credit-favored neighbors. Although African-American neighborhoods were much more likely to be redlined, I show the effects do not vary by a neighborhood’s initial share of African American residents. Results also hold when restricting the sample to neighborhoods without any black residents in 1940. Taken together, these findings suggest redlining impacted neighborhood housing supply and population independent of pre-war patterns of racial segregation.

In Progress:

The Impact of Local Residential Land Use Restrictions on Land Values Across and Within Single Family Housing Markets (with Joseph Gyourko)Using new data on vacant land parcels bought by builders for the purpose of single-family home development between 2013-2018, we estimate that restrictive residential land use environments have increased prices for a one-quarter acre lot with the right to build on it by over $400,000 in the San Francisco metropolitan area, by from $150,000-$200,000 in the Los Angeles, New York City and Seattle markets, and by just over $100,000 in the San Jose market.  One-quarter acre lot prices are higher by from $60,000-$80,000 in the Chicago, Philadelphia, Portland (OR), and Washington, DC regions and by $35,000-$45,000 in the Boston, Miami (FL) and Riverside-San Bernardino metro areas.  These so-called ‘zoning taxes’, which reflect the difference between land values on the extensive and intensive margins, are negligible to economically modest in a wide range of other markets including Atlanta, Charlotte, Cincinnati, Columbus (OH), Dallas, Deltona (FL), Denver, Detroit, Minneapolis, Nashville, Orlando and Phoenix.  Our zoning tax estimates also are strongly positively correlated with the new Wharton Residential Land Use Regulatory Index for 2018, which is increasing in the degree of regulatory constraint imposed in the underlying market.  This relationship is not mechanically driven as the regulatory index is constructed from survey data that does not incorporate land or house prices in any way.  Finally, our results are important inputs for future research into how housing markets change in response to land use regulation.
Publications Below:
  • Jesse Bricker, Jacob Krimmel, Rodney Ramcharan (2020), Signaling Status: The Impact of Relative Income on Household Consumption and Financial Decisions”, Management Science.

  • Jacob Krimmel, Persistence of Prejudice: Estimating the Long Term Effects of Redlining.

    Abstract: As part of a New Deal initiative to minimize home foreclosure, federal government officials and local real estate professionals graded each neighborhood in America's largest cities on its perceived credit risk. Using recently digitized maps that precisely show neighborhoods marked with red ink (highest risk) or yellow ink (slightly lower risk), I document that surveyors disproportionately assigned the most restrictive credit rating to neighborhoods with black residents. Nearly 90 percent of African Americans in 1940 lived in a census tract marked for credit redlining. Comparing credit-restricted "redlined" census tracts to adjacent "yellow-lined" tracts, I estimate the long-run effects of redlining on housing and neighborhood outcomes. Between 1940 and 1970, redlining was associated with large differential declines in housing supply and population density; homeownership rates and racial composition did not change differentially from their 1940 baseline though. Once discriminatory lending was outlawed during the mid-1970s, there was moderate convergence in homeownership rates and racial composition. However, housing supply and population density remain persistently lower in formerly credit-restricted census tracts relative to their credit-favored neighbors. Although African-American neighborhoods were much more likely to be redlined, I show the effects do not vary by a neighborhood’s initial share of African American residents. Results also hold when restricting the sample to neighborhoods without any black residents in 1940. Taken together, these findings suggest redlining impacted neighborhood housing supply and population independent of pre-war patterns of racial segregation.

  • Jacob Krimmel, Jesse Bricker, Alice Henriques, John Sabelhaus (2016), Estimating Top Income and Wealth Shares: Sensitivity to Data and Methods, American Economic Review, Papers and Proceedings, 106 (5), pp. 641-645. 10.1257/aer.p20161020

  • Jesse Bricker, Alice Henriques, Jacob Krimmel, John Sabelhaus (2016), Measuring Income and Wealth at the Top Using Administrative and Survey Data, Brookings Papers on Economic Activity, 52.

    Abstract: Most available estimates of US wealth and income concentration indicate that top shares are high and rising in recent decades, but there is some disagreement about specific levels and trends. Household surveys are the traditional data source used to measure top shares, but recent studies using administrative tax records suggest that those survey-based top share estimates may not be capturing all of the increasing concentration. In this paper we reconcile the divergent top share estimates, showing how the choice of data sets and methodological decisions affect the levels and trends. Relative to the new and most widely-cited top share estimates based on administrative tax data alone, our preferred estimates for both wealth and income concentration are lower and rising less rapidly in recent years.

  • Jacob Krimmel, Kevin Moore, John Sabelhaus, Paul Smith (2013), The Current State of U.S. Household Balance Sheets, Federal Reserve Bank of St. Louis Review, 95 (5), pp. 337-359.

Teaching

  • Housing Markets (MBA & Undergraduate), Wharton School
    • Teaching Fellow for Professor Joseph Gyourko (Spring 2020)
  • Evaluating Evidence – Research Methods (Undergraduate), Wharton School
    • Guest lecturer and teaching fellow for Professor Iwan Barankay (Spring 2020 & 2018)
  • Business in the Global Political Environment (Undergraduate), Wharton School
    • Grader for Professors Shing-Yi Wang, Santosh Anagol & Ayse Kaya (Fall 2018-2020)
  • Microeconomics for Managers (MBA), Wharton School
    • Head teaching asst. for Professors Joseph Harrington and Heather Schofield (Fall 2017)

Awards and Honors

  • C. Lowell Harriss Dissertation Fellowship (Lincoln Institute of Land Policy), 2020
  • Robert R. Nathan Fellowship (Wharton), 2020
  • London Business School/Wheeler Institute for Business and Development Award for Potential Impact (Presented at Trans-Atlantic Doctoral Conference), 2019
  • IPUMS Spatial Research Award (Best graduate student paper using NHGIS data), 2018
  • Kraks Fond Prize (Best student paper at Urban Economics Association Meetings), 2018
  • Wharton Mack Institute for Innovation Research Grant, 2018
  • Amy Morse Prize (Awarded to top first year student in Wharton Applied Economics Department), 2016
  • Wharton Doctoral Education Fellowship, 2015-2020

    In the News

    Activity

    In the News

    Why Economists Have Trouble with Bubbles

     

    "Why Economists Have Trouble with Bubbles" by Noah Smith, Bloomberg View. July 28, 2015

     

    Bloomberg View - 07/28/2015
    All News