Advanced Search
MyIDEAS: Login to save this article or follow this journal

How well do urban growth boundaries contain development? Results for Oregon using a difference-in-difference estimator

Contents:

Author Info

  • Dempsey, Judith A.
  • Plantinga, Andrew J.
Registered author(s):

    Abstract

    Urban containment policies, including urban growth boundaries (UGBs), are a common tool used by city planners to promote compact development. We analyze how well UGBs do in containing development using fine-scale GIS data on cities in Oregon. Earlier studies on UGBs yield mixed results, with some authors finding no effects of UGBs on housing market variables and urbanization rates and others finding significant effects. A challenge in measuring these effects is that the location of the UGB is unlikely to be an exogenous determinant of a land parcel's value for development. The panel structure of our dataset allows us to estimate the UGB's effect on the probability of development using a difference-in-difference estimator applied to a narrow band of plots along each city's UGB. This estimator controls for time-invariant unobservable variables and common temporal effects among plots, thereby mitigating the potential for biased estimates due to the endogeneity of the UGB's location. We also pursue a novel approach to controlling for time-varying factors that exploits our fine-scale data. We find that UGBs contain development in many of the Oregon cities we examine, although there are some cities in which development rates are the same inside and outside of the UGB. Our results reveal that, in most cities, the effect of the UGB is small relative to pre-existing differences in development probabilities. This suggests that it may be difficult to identify UGB effects with cross-sectional data, the approach commonly taken in previous studies.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.sciencedirect.com/science/article/pii/S0166046213000914
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Elsevier in its journal Regional Science and Urban Economics.

    Volume (Year): 43 (2013)
    Issue (Month): 6 ()
    Pages: 996-1007

    as in new window
    Handle: RePEc:eee:regeco:v:43:y:2013:i:6:p:996-1007

    Contact details of provider:
    Web page: http://www.elsevier.com/locate/regec

    Related research

    Keywords: R14 (land use patterns); R5 (land use and other regulations);

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Christopher R. Cunningham, 2007. "Growth Controls, Real Options, and Land Development," The Review of Economics and Statistics, MIT Press, vol. 89(2), pages 343-358, May.
    2. Timothy Conley & Christopher Taber, 2005. "Inference with "Difference in Differences" with a Small Number of Policy Changes," NBER Technical Working Papers 0312, National Bureau of Economic Research, Inc.
    3. Cho, Seong-Hoon & Chen, Zhuo & Yen, Steven T. & Eastwood, David B., 2006. "Estimating Effects of an Urban Growth Boundary on Land Development," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(02), August.
    4. Jeffrey M. Wooldridge, 2001. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262232197, December.
    5. John Carruthers & Ralph Mclaughlin & Marlon Boarnet, 2006. "Does State Growth Management Change the Pattern of Urban Growth? Evidence From Florida," ERSA conference papers ersa06p544, European Regional Science Association.
    6. Jason Abrevaya & Daniel S. Hamermesh, 2012. "Charity and Favoritism in the Field: Are Female Economists Nicer (To Each Other)?," The Review of Economics and Statistics, MIT Press, vol. 94(1), pages 202-207, February.
    7. Robert W. Wassmer, 2006. "The Influence of Local Urban Containment Policies and Statewide Growth Management on the Size of United States Urban Areas," Journal of Regional Science, Wiley Blackwell, vol. 46(1), pages 25-65.
    8. Daniel P. McMillen & John F. McDonald, 2002. "Land Values In A Newly Zoned City," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 62-72, February.
    9. Grout, Cyrus A. & Jaeger, William K. & Plantinga, Andrew J., 2011. "Land-use regulations and property values in Portland, Oregon: A regression discontinuity design approach," Regional Science and Urban Economics, Elsevier, vol. 41(2), pages 98-107, March.
    10. Ihlanfeldt, Keith R., 2007. "The effect of land use regulation on housing and land prices," Journal of Urban Economics, Elsevier, vol. 61(3), pages 420-435, May.
    11. Hanson, Andrew & Rohlin, Shawn, 2013. "Do spatially targeted redevelopment programs spillover?," Regional Science and Urban Economics, Elsevier, vol. 43(1), pages 86-100.
    12. Cho, Seong-Hoon & Omitaomu, Olufemi A. & Poudyal, Neelam C. & Eastwood, David B., 2007. "The Impact of an Urban Growth Boundary on Land Development in Knox County, Tennessee: A Comparison of Two-Stage Probit Least Squares and Multilayer Neural Network Models," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 39(03), December.
    13. Krupka, Douglas J. & Noonan, Douglas S., 2008. "Empowerment Zones, Neighborhood Change and Owner Occupied Housing," IZA Discussion Papers 3320, Institute for the Study of Labor (IZA).
    14. Hanson, Andrew, 2009. "Local employment, poverty, and property value effects of geographically-targeted tax incentives: An instrumental variables approach," Regional Science and Urban Economics, Elsevier, vol. 39(6), pages 721-731, November.
    15. Albert Saiz, 2010. "The Geographic Determinants of Housing Supply," The Quarterly Journal of Economics, MIT Press, vol. 125(3), pages 1253-1296, August.
    16. Quigley, John M. & Rosenthal, Larry A., 2005. "The Effects of Land-Use Regulation on the Price of Housing: What Do We Know? What Can We Learn?," Berkeley Program on Housing and Urban Policy, Working Paper Series qt90m9g90w, Berkeley Program on Housing and Urban Policy.
    17. J. Phillips & E. Goodstein, 2000. "Growth management and housing prices: the case of Portland, Oregon," Contemporary Economic Policy, Western Economic Association International, vol. 18(3), pages 334-344, 07.
    18. Daniel P. McMillen, 2012. "Perspectives On Spatial Econometrics: Linear Smoothing With Structured Models," Journal of Regional Science, Wiley Blackwell, vol. 52(2), pages 192-209, 05.
    19. R Pendall, 1999. "Do land-use controls cause sprawl?," Environment and Planning B: Planning and Design, Pion Ltd, London, vol. 26(4), pages 555-571, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:eee:regeco:v:43:y:2013:i:6:p:996-1007. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.