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Zoning and the Distribution of Location Rents: An Empirical Analysis of Harris County, Texas

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  • Jeremy R. Groves
  • Eric Helland

Abstract

The Coase theorem presents two criteria for evaluating regulation: regulations efficiency relative to private solutions and how the regulation affects the distribution of wealth. Previous studies of the impact of municipal zoning have focused on Coase’s first criteria: whether zoning raises land values overall. This study estimates the transfer of wealth between owners of existing homes that results from the creation of a municipal zoning ordinance. We find that property best suited to residential use gains in value while property with relatively higher potential as commercial property experiences a decline in the value. We find that zoning is distributive.

Suggested Citation

  • Jeremy R. Groves & Eric Helland, 2002. "Zoning and the Distribution of Location Rents: An Empirical Analysis of Harris County, Texas," Land Economics, University of Wisconsin Press, vol. 78(1), pages 28-44.
  • Handle: RePEc:uwp:landec:v:78:y:2002:i:1:p:28-44
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    Cited by:

    1. B. James Deaton & John P. Hoehn & Patricia E. Norris, 2007. "Net Buyers, Net Sellers, and Agricultural Landowner Support for Agricultural Zoning," Land Economics, University of Wisconsin Press, vol. 83(2), pages 153-165.
    2. Jonathan Young, 2004. "Effects of Zoning on Residential Option Value," Working Papers Working Paper 2004-12, Regional Research Institute, West Virginia University.
    3. repec:rri:wpaper:200412 is not listed on IDEAS
    4. repec:eee:regeco:v:69:y:2018:i:c:p:69-76 is not listed on IDEAS

    More about this item

    JEL classification:

    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

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