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The Holdout Problem and Urban Sprawl

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Author Info

  • Thomas J. Miceli

    (University of Connecticut)

  • C. F. Sirmans

    (University of Connecticut)

Abstract

Developers attempting land assembly often face a potential holdout problem that raises the cost of development. To minimize this extra cost, developers will prefer land whose ownership is less dispersed. This creates a bias toward development at the urban fringe where average lot sizes are larger, resulting in urban sprawl. This paper examines the link between the holdout problem and urban sprawl and discusses possible remedies.

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File URL: http://web2.uconn.edu/economics/working/2004-38.pdf
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Bibliographic Info

Paper provided by University of Connecticut, Department of Economics in its series Working papers with number 2004-38.

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Length: 17 pages
Date of creation: Nov 2004
Date of revision:
Handle: RePEc:uct:uconnp:2004-38

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Web page: http://www.econ.uconn.edu/
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Related research

Keywords: Urban sprawl; holdout problem; urban renewal; public use;

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  1. Brueckner, Jan K., 1997. "Infrastructure financing and urban development:: The economics of impact fees," Journal of Public Economics, Elsevier, vol. 66(3), pages 383-407, December.
  2. Strange William C., 1995. "Information, Holdouts, and Land Assembly," Journal of Urban Economics, Elsevier, vol. 38(3), pages 317-332, November.
  3. O'Flaherty, Brendan, 1994. "Land assembly and urban renewal," Regional Science and Urban Economics, Elsevier, vol. 24(3), pages 287-300, June.
  4. Cohen, Lloyd, 1991. "Holdouts and Free Riders," The Journal of Legal Studies, University of Chicago Press, University of Chicago Press, vol. 20(2), pages 351-62, June.
  5. McFarlane, Alastair, 1999. "Taxes, Fees, and Urban Development," Journal of Urban Economics, Elsevier, vol. 46(3), pages 416-436, November.
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Cited by:
  1. Florenz Plassmann & T. Nicolaus Tideman, 2007. "Efficient Urban Renewal Without Takings: Two Solutions to the Land Assembly Problem," Working Papers e07-8, Virginia Polytechnic Institute and State University, Department of Economics.

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