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Zoning and Fiscal Interdependencies


  • Lenon, MaryJane
  • Chattopadhyay, Sajal K
  • Heffley, Dennis R


Although there are strong theoretical reasons to regard optimal zoning and fiscal policies as simultaneous decisions, most empirical studies have focused on one type of decision or the other. Even fewer attempts have been made to study interdependencies between competing towns in their selection of zoning and fiscal policies. If these interdependencies are prevalent, autonomous local governments may pursue zoning, taxing and spending policies that are locally rational but socially inefficient. In this study, an optimization model of the local economy is used to illustrate the nature of these interdependencies and to specify an appropriate empirical test. Data from 164 Connecticut townships are used to estimate the empirical model. Copyright 1996 by Kluwer Academic Publishers

Suggested Citation

  • Lenon, MaryJane & Chattopadhyay, Sajal K & Heffley, Dennis R, 1996. "Zoning and Fiscal Interdependencies," The Journal of Real Estate Finance and Economics, Springer, vol. 12(2), pages 221-234, March.
  • Handle: RePEc:kap:jrefec:v:12:y:1996:i:2:p:221-34

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    Cited by:

    1. Brueckner, Jan K., 1998. "Testing for Strategic Interaction Among Local Governments: The Case of Growth Controls," Journal of Urban Economics, Elsevier, vol. 44(3), pages 438-467, November.
    2. Luz Amparo Saavedra, 2000. "Do Local Governments Engage in Strategic Property- Tax competition?," Borradores de Economia 139, Banco de la Republica de Colombia.
    3. Brueckner, Jan K. & Saavedra, Luz A., 2001. "Do Local Governments Engage in Strategic Property-Tax Competition?," National Tax Journal, National Tax Association;National Tax Journal, vol. 54(2), pages 203-230, June.
    4. Stephen Malpezzi, 2001. "NIMBYs and Knowledge: Urban Regulation and the "New Economy"," Wisconsin-Madison CULER working papers 01-4, University of Wisconsin Center for Urban Land Economic Research.
    5. Gyourko, Joseph & Molloy, Raven, 2015. "Regulation and Housing Supply," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.),Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1289-1337, Elsevier.
    6. Hsieh, Wen-Hua & Irwin, Elena G. & Forster, D. Lynn, 2000. "Spatial Dependence Among County-Level Land Use Changes," 2000 Annual meeting, July 30-August 2, Tampa, FL 21852, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Luz Amparo Saavedra, 2000. "Do Local Governments Engage In Strategic Property- Tax Competition," BORRADORES DE ECONOMIA 002378, BANCO DE LA REPÚBLICA.

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