ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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In Defence of Relaxed FSI Limits

We are responding to Shirish B Patel’s “More FSI, More Welfare?” (EPW, 29 June 2013).

(1) The article reflects a lack of understanding of the analysis in our 2012 paper and in Bertaud and Brueckner (2005). Patel says that commuting cost could be reduced to zero with unlimited densification, arguing that our analysis favours this absurd outcome. Instead, our analysis says that an increase in densification up to the level that would prevail in the absence of floor space index (FSI) restrictions is optimal. Increases in density beyond that level are not desirable. In other words, equilibrium densities achieved in the absence of FSI restrictions are the right ones.

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