• Media type: E-Article
  • Title: ‘Trophy Architects’ and Design as Rent‐seeking: Quantifying Deadweight Losses in a Tightly Regulated Office Market
  • Contributor: Cheshire, Paul C.; Dericks, Gerard H.
  • Published: Wiley, 2020
  • Published in: Economica, 87 (2020) 348, Seite 1078-1104
  • Language: English
  • DOI: 10.1111/ecca.12339
  • ISSN: 0013-0427; 1468-0335
  • Keywords: Economics and Econometrics
  • Origination:
  • Footnote:
  • Description: <jats:p>Britain tightly restricts the supply of office space, creating substantial economic rents, but its development restrictions are politically administered and therefore gameable, inducing rent‐seeking activity. We find that ‘trophy architects’ (<jats:styled-content style="fixed-case">TA</jats:styled-content>s)—prior winners of a lifetime achievement award—obtain more space on a given site apparently by signalling architectural merit. Analysis of 2039 office buildings shows that <jats:styled-content style="fixed-case">TA</jats:styled-content>s build 14 stories taller, thereby increasing a representative site value by 152% and capturing potential economic rents of £148m. However, we argue that this apparent premium is merely compensation for the extra costs, risks and delays of using a <jats:styled-content style="fixed-case">TA</jats:styled-content> to game the planning system; it is therefore an indirect measure of the deadweight costs of this form of rent‐seeking.</jats:p>