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The Rebound of Private Zoning: Property Rights and Local Governance in Urban Land Use

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  • F Frederic Deng

    (Department of Geography and Planning, AS218, State University of New York at Albany, Albany, NY 12222, USA)

Abstract

NIMBY and regulatory takings are two well-known phenomena associated with land-use change in US cities. I claim that both are manifestations of what economists refer to as a ‘hold-up problem’ and analyze how fast-growing private zoning, namely the ground-lease system and common interest developments, have evolved to respond to these problems. My argument is based on two spatial facts: the consumption of local collective goods is bundled with land and property; property owners have only limited ex post mobility. By comparing five different combinations of property rights and land use control, I submit that private zoning is most efficient in relieving the agency problem in urban land use. Policy implications of NIMBY and equity issues of private zoning are also discussed.

Suggested Citation

  • F Frederic Deng, 2003. "The Rebound of Private Zoning: Property Rights and Local Governance in Urban Land Use," Environment and Planning A, , vol. 35(1), pages 133-149, January.
    • Handle: RePEc:sae:envira:v:35:y:2003:i:1:p:133-149
    DOI: 10.1068/a35123
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    2. Deng, Feng, 2008. "What Is “Open”? An Economic Analysis of Open Institutions," MPRA Paper 8888, University Library of Munich, Germany.

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