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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.

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  • 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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    References listed on IDEAS

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    Cited by:

    1. Michael Ball & Melek Cigdem & Elizabeth Taylor & Gavin Wood, 2014. "Urban Growth Boundaries and their Impact on Land Prices," Environment and Planning A, , vol. 46(12), pages 3010-3026, December.
    2. Steven G. Medema, 2020. "The Coase Theorem at Sixty," Journal of Economic Literature, American Economic Association, vol. 58(4), pages 1045-1128, December.
    3. Jonathan Young, 2004. "Effects of Zoning on Residential Option Value," Working Papers Working Paper 2004-12, Regional Research Institute, West Virginia University.
    4. Tideman, Nicolaus & Plassmann, Florenz, 2018. "The effects of changes in land value on the value of buildings," Regional Science and Urban Economics, Elsevier, vol. 69(C), pages 69-76.
    5. 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.
    6. Lawrence W C Lai & Kwong Wing Chau & Edward C Y Yiu & Kelvin S K Wong & Wah Sang Wong & Pearl Y L Chan, 2007. "Measuring and Interpreting the Effects of a Public-Sector-Led Urban Renewal Project on Housing Prices—An Empirical Study of a Comprehensive Development Area Zone Developed upon ‘Taking’ in Hong ," Environment and Planning B, , vol. 34(3), pages 524-538, June.

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    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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