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Municipal Monopoly Power and the Supply of Residential Development Rights

  • Laurie J. Bates

    (Bryant College)

This study provides a theoretical and empirical framework that emphasizes the importance of municipal monopoly power on decisions about such land use controls as lot-size requirements and allowable use. The main hypothesis is that the quantity of the residential development rights supplied depends on the monopoly power or unique characteristics of a community. Indices of demographic, spatial and geographic uniqueness are developed for a sample of Connecticut communities. The empirical results suggest that unique communities tend to restrict residential development rights, as exemplified by larger lot sizes and smaller numbers of zoned residential parcels.

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Article provided by Eastern Economic Association in its journal Eastern Economic Journal.

Volume (Year): 19 (1993)
Issue (Month): 2 (Spring)
Pages: 173-184

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Handle: RePEc:eej:eeconj:v:19:y:1993:i:2:p:173-184
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  1. Buchanan, James M. & Goetz, Charles J., 1972. "Efficiency limits of fiscal mobility: An assessment of the tiebout model," Journal of Public Economics, Elsevier, vol. 1(1), pages 25-43, April.
  2. Hamilton, Bruce W., 1978. "Zoning and the exercise of monopoly power," Journal of Urban Economics, Elsevier, vol. 5(1), pages 116-130, January.
  3. Fischel, William A., 1980. "Zoning and the exercise of monopoly power: A reevaluation," Journal of Urban Economics, Elsevier, vol. 8(3), pages 283-293, November.
  4. Rose, Louis A., 1989. "Urban land supply: Natural and contrived restrictions," Journal of Urban Economics, Elsevier, vol. 25(3), pages 325-345, May.
  5. Caves, Richard E & Williamson, Peter J, 1985. "What Is Product Differentiation, Really?," Journal of Industrial Economics, Wiley Blackwell, vol. 34(2), pages 113-32, December.
  6. Rolleston, Barbara Sherman, 1987. "Determinants of restrictive suburban zoning: An empirical analysis," Journal of Urban Economics, Elsevier, vol. 21(1), pages 1-21, January.
  7. Edelson, Noel M., 1976. "Voting equilibria with market-based assessments," Journal of Public Economics, Elsevier, vol. 5(3-4), pages 269-284.
  8. Ohls, James C. & Weisberg, Richard Chadbourn & White, Michelle J., 1974. "The effect of zoning on land value," Journal of Urban Economics, Elsevier, vol. 1(4), pages 428-444, October.
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