Zoning and the Distribution of Locational Rents: An Empirical Analysis of Harris County Texas
The Coase theorem presents two criteria for evaluating regulation. The first is how successful the regulation is at reaching the efficient outcome relative to private solutions. The second and less discussed criterion is 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. There has been less focus on distributional aspects of zoning. How does municipal zoning affect the wealth of participants in the property market? Most of the existing studies focus on the transfer of rents between those who have developed property and those with undeveloped property. 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. Our results support the contention that zoning is distributive.
|Date of creation:|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (909) 607-3041
Fax: (909) 621-8249
Web page: http://www.claremontmckenna.edu/rdschool/papers/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Joseph Tracy & Henry Schneider & Sewin Chan, 1999. "Are stocks overtaking real estate in household portfolios?," Current Issues in Economics and Finance, Federal Reserve Bank of New York, vol. 5(Apr).
- Henry O. Pollakowski & Susan M. Wachter, 1990. "The Effects of Land-Use Constraints on Housing Prices," Land Economics, University of Wisconsin Press, vol. 66(3), pages 315-324.
- Grieson, Ronald E. & White, James R., 1981. "The effects of zoning on structure and land markets," Journal of Urban Economics, Elsevier, vol. 10(3), pages 271-285, November.
- Wallace, Nancy E., 1988. "The market effects of zoning undeveloped land: Does zoning follow the market?," Journal of Urban Economics, Elsevier, vol. 23(3), pages 307-326, May.
- Geltner, David & Riddiough, Timothy & Stojanovic, Srdjan, 1996. "Insights on the Effect of Land Use Choice: The Perpetual Option on the Best of Two Underlying Assets," Journal of Urban Economics, Elsevier, vol. 39(1), pages 20-50, January.
- McMillen, Daniel P. & McDonald, John F., 1991. "A simultaneous equations model of zoning and land values," Regional Science and Urban Economics, Elsevier, vol. 21(1), pages 55-72, May.
- Speyrer, Janet Furman, 1989. "The Effect of Land-Use Restrictions on Market Values of Single-Family Homes in Houston," The Journal of Real Estate Finance and Economics, Springer, vol. 2(2), pages 117-30, June.
- Frech, H. III & Lafferty, Ronald N., 1984. "The effect of the California Coastal Commission on housing prices," Journal of Urban Economics, Elsevier, vol. 16(1), pages 105-123, July.
- William Fischel, 1980. "Externalities and zoning," Public Choice, Springer, vol. 35(1), pages 37-43, January.
- Daniel P. McMillen & John F. McDonald, 2002. "Land Values In A Newly Zoned City," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 62-72, February.
- Mark, Jonathan H. & Goldberg, Michael A., 1986. "A study of the impacts of zoning on housing values over time," Journal of Urban Economics, Elsevier, vol. 20(3), pages 257-273, November.
- McMillen Daniel P. & McDonald John F., 1993. "Could Zoning Have Increased Land Values in Chicago?," Journal of Urban Economics, Elsevier, vol. 33(2), pages 167-188, March.
- Curran, Christopher & Schrag, Joel, 2000. "Does It Matter Whom an Agent Serves? Evidence from Recent Changes in Real Estate Agency Law," Journal of Law and Economics, University of Chicago Press, vol. 43(1), pages 265-84, April.
- Crone, Theodore M., 1983. "Elements of an economic justification for municipal zoning," Journal of Urban Economics, Elsevier, vol. 14(2), pages 168-183, September.
- Gerrit J. Knaap, 1997. "The Price Effects of Urban Growth Boundaries in Metropolitan Portland, Oregon," Land Economics, University of Wisconsin Press, vol. 62(1), pages 26-35.
- 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.
- McDonald, John F & McMillen, Daniel P, 1998. "Land Values, Land Use, and the First Chicago Zoning Ordinance," The Journal of Real Estate Finance and Economics, Springer, vol. 16(2), pages 135-50, March.
- White, James R., 1988. "Large lot zoning and subdivision costs: A test," Journal of Urban Economics, Elsevier, vol. 23(3), pages 370-384, May.
When requesting a correction, please mention this item's handle: RePEc:clm:clmeco:2000-15. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.