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Urban Growth Boundary and Housing Prices: The Case of Knox County, Tennessee

Author

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  • Cho, Seong-Hoon

    (U TN)

  • Chen, Zhuo

    (Chicago Center of Excellence in Health Promotion Economics, U Chicago)

  • Yen, Steven T.

    (U TN)

Abstract

This study tests the hypothesis that a higher present value of expected rental stream of undeveloped land in the urban growth area influences the effect of the Urban Growth Boundary (UGB) on the values of newly developed houses in Knoxville and Knox County, Tennessee. We estimate a version of the Box-Cox (BC) transformed hedonic housing price model, which accommodates both non-normality and heteroskedasticity in the stochastic error term. The finding of this study verifies the premise that the values of newly developed houses after the implementation of a UGB are likely to be higher within the urban growth area than those outside, all other things equal.

Suggested Citation

  • Cho, Seong-Hoon & Chen, Zhuo & Yen, Steven T., 2008. "Urban Growth Boundary and Housing Prices: The Case of Knox County, Tennessee," The Review of Regional Studies, Southern Regional Science Association, vol. 38(1), pages 29-44.
  • Handle: RePEc:rre:publsh:v:38:y:2008:i:1:p:29-44
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    References listed on IDEAS

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    Cited by:

    1. Seong-Hoon Cho & Seung Gyu Kim & Roland K. Roberts & Dayton M. Lambert & Taeyoung Kim, 2015. "Effects of Land-Related Policies on Land Development during a Real Estate Boom and a Recession," Growth and Change, Wiley Blackwell, vol. 46(2), pages 218-232, June.
    2. Richard J. Vyn, 2015. "The Effect of Agricultural Zoning on Rural Residential Property Values: An Application to Ontario's Greenbelt," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(3), pages 281-307, September.
    3. Jackson, Kristoffer, 2016. "Do land use regulations stifle residential development? Evidence from California cities," Journal of Urban Economics, Elsevier, vol. 91(C), pages 45-56.

    More about this item

    Keywords

    Hedonic; Housing;

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

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