The Impact of Highways on Population Redistribution: The Role of Land Development Restrictions

We study the role of land development restrictions for the effects of highway expansion on the spatial distribution of population for the Netherlands. Introducing an IV approach to address multiple endogenous interaction variables, our findings show that new highways accelerated population growth in peripheral areas, but had no apparent effect in suburban municipalities, in line with the presence of development restrictions. Highway expansions caused a ‘leapfrog’ pattern in which suburban growth skipped development-restricted areas and expanded into farther located peripheral areas.