Measuring Interactions Among Urban Development, Land Use Regulations, And Public Finance
AbstractIn this paper, a theoretical model is developed to analyze the interactions among residential development, land use regulations, and public financial impacts (public expenditure and property tax). A simultaneous equations system with self-selection and discrete dependent variables is estimated to determine the interactions for counties in the five western states (California, Idaho, Nevada, Oregon, and Washington). The results show that county governments are more likely to impose land use regulations when facing rapid land development, high public expenditure and property tax. The land use regulations, in turn, decrease land development, long-run public expenditure, and property tax at the cost of higher housing prices and property tax. During the period of 1982-1992, land use regulations reduced developed areas by 612,800 acres or 8.8 % of the developed area of five western states in 1992, but increased housing price by $5,741 per unit under "stringent" regulations and $1,319 per unit under "low" regulations. Because it costs money to develop and implement land use regulations, land use regulations increased public expenditure and property tax in the short run, during the period of 1982-1987. However, in the long-run (1982-1992), land use regulations actually reduce public expenditure and property taxes because the regulations reduce developed areas. The results also show that land use regulations, land development, public expenditure, and property tax all are significantly affected by population, geographic location, land quality, housing prices, and the risks and costs of development.
Download InfoIf 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.
Bibliographic InfoPaper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2001 Annual meeting, August 5-8, Chicago, IL with number 20774.
Date of creation: 2001
Date of revision:
Contact details of provider:
Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
Community/Rural/Urban Development; Land Economics/Use;
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.:
- William A. Fischel, 1978. "A Property Rights Approach to Municipal Zoning," Land Economics, University of Wisconsin Press, vol. 54(1), pages 64-81.
- Daniel P. McMillen & John F. McDonald, 1989. "Selectivity Bias in Urban Land Value Functions," Land Economics, University of Wisconsin Press, vol. 65(4), pages 341-351.
- Bockstael, N. & Costanza, R. & Strand, I. & Boynton, W. & Bell, K. & Wainger, L., 1995. "Ecological economic modeling and valuation of ecosystems," Ecological Economics, Elsevier, vol. 14(2), pages 143-159, August.
- Henderson, J Vernon, 1980. "Community Development: The Effects of Growth and Uncertainty," American Economic Review, American Economic Association, vol. 70(5), pages 894-910, December.
- McMillen, Daniel P. & McDonald, John F., 1991. "Urban land value functions with endogenous zoning," Journal of Urban Economics, Elsevier, vol. 29(1), pages 14-27, January.
- McDonald, John F & McMillen, Daniel P, 1998. "Land Values, Land Use, and the First Chicago Zoning Ordinance," The Journal of Real Estate Finance and Economics, Springer, vol. 16(2), pages 135-50, March.
- Ian W. Hardie & Peter J. Parks, 1997. "Land Use with Heterogeneous Land Quality: An Application of an Area Base Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 299-310.
- David L. Chicoine, 1981. "Farmland Values at the Urban Fringe: An Analysis of Sale Prices," Land Economics, University of Wisconsin Press, vol. 57(3), pages 353-362.
- Plantinga, Andrew J. & Lubowski, Ruben N. & Stavins, Robert N., 2002.
"The effects of potential land development on agricultural land prices,"
Journal of Urban Economics,
Elsevier, vol. 52(3), pages 561-581, November.
- Stavins, Robert & Plantinga, Andrew & Lubowski, Ruben, 2002. "The Effects of Potential Land Development on Agricultural Land Prices," Discussion Papers dp-02-11-, Resources For the Future.
- Plantinga, Andrew & Lubowski, Ruben & Stavins, Robert, 2002. "The Effects of Potential Land Development on Agricultural Land Prices," Working Paper Series rwp02-012, Harvard University, John F. Kennedy School of Government.
- Li, Man & Wu, JunJie & Deng, Xiangzheng, 2009. "Empirical Analysis of Land-use Change and Soil Carbon Sequestration Cost in China," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49568, Agricultural and Applied Economics Association.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.