Thanks, I recall there being some debate about the magnitude of the effect, but if recall correctly, some authors argued the problem was even worse than Hsieh-Moretti thought originally?

Whatever the actual percentage, it makes intuitive sense a spatial misallocation of labor and capital will hurt economic growth.

You might be thinking of this earlier correction, which made their effect larger. https://www.econlib.org/a-correction-on-housing-regulation/