Economic growth has fallen more sharply in the Netherlands since 2001 than in most other European countries. Domestic factors that boosted growth in the late 1990s – wealth effects from housing and stock markets and pension fund developments – have since turned around, accentuating the effects of the international business cycle. A number of institutional arrangements – residential zoning laws and tax subsidies for owner occupiers, plus weaknesses in pension fund regulation – have contributed to these developments as well as undermining economic efficiency. Output has thus fallen ...