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Modeling local growth control decisions in a multi-city case: Do spatial interactions and lobbying efforts matter?

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  • Katharina Schone

    (LEG - Laboratoire d'Economie et de Gestion - UB - Université de Bourgogne - CNRS - Centre National de la Recherche Scientifique, ENGREF - Ecole Nationale du Génie Rural, des Eaux et des Forêts)

  • Wilfried Koch

    (UQAM - Université du Québec à Montréal = University of Québec in Montréal)

  • Catherine Baumont

    (LEG - Laboratoire d'Economie et de Gestion - UB - Université de Bourgogne - CNRS - Centre National de la Recherche Scientifique)

Abstract

Our article analyzes the determinants of local growth control decisions, which are modeled as the result of a political struggle between different groups of voters and organized lobbies. We show that under specific hypotheses, a higher homeownership rate can induce lower levels of controls. Considering residential choices as endogenous to growth control policies, the local decisions to control growth become strategically interdependent. Assuming imperfect mobility, we show that a spatial econometric specification can be directly derived from our theoretical model. Our empirical analysis concerning the determinants of the "taxe locale d'équipement", a French local development tax, is thus naturally based on spatial econometrics. Its results confirm the major predictions of our model.

Suggested Citation

  • Katharina Schone & Wilfried Koch & Catherine Baumont, 2013. "Modeling local growth control decisions in a multi-city case: Do spatial interactions and lobbying efforts matter?," Post-Print halshs-01228450, HAL.
    • Handle: RePEc:hal:journl:halshs-01228450
    DOI: 10.1007/s11127-011-9811-1
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01228450
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    Cited by:

    1. Hilber, Christian A.L. & Robert-Nicoud, Frédéric, 2013. "On the origins of land use regulations: Theory and evidence from US metro areas," Journal of Urban Economics, Elsevier, vol. 75(C), pages 29-43.
    2. Helder Ferreira de Mendonça & Matheus Souza Peçanha, 2020. "Fiscal management performance and local economic development: evidence from a large emerging economy," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 48(3), pages 641-659, July.
    3. Murray, Cameron K. & Frijters, Paul, 2015. "Clean Money in a Dirty System: Relationship Networks and Land Rezoning in Queensland," IZA Discussion Papers 9028, Institute of Labor Economics (IZA).
    4. Delattre, Laurence & Chanel, Olivier & Livenais, Cecile & Napoléone, Claude, 2015. "Combining discourse analyses to enrich theory: The case of local land-use policies in South Eastern France," Ecological Economics, Elsevier, vol. 113(C), pages 60-75.
    5. Raul Caruso & Nicola Pontarollo & Roberto Ricciuti, 2020. "Regional diffusion of military regimes in sub‐Saharan Africa," Papers in Regional Science, Wiley Blackwell, vol. 99(1), pages 225-244, February.
    6. John M. de Figueiredo & Brian Kelleher Richter, 2013. "Advancing the Empirical Research on Lobbying," NBER Working Papers 19698, National Bureau of Economic Research, Inc.
    7. Murray, Cameron K. & Frijters, Paul, 2016. "Clean money, dirty system: Connected landowners capture beneficial land rezoning," Journal of Urban Economics, Elsevier, vol. 93(C), pages 99-114.
    8. Raul Caruso & Ilaria Petrarca & Roberto Ricciuti, 2014. "Spatial Concentration of Military Dictatorships in Sub-Saharan Africa (1977-2007)," CESifo Working Paper Series 4802, CESifo.

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    More about this item

    Keywords

    Growth control; land use regulation; Spatial econometrics; Lobbying;
    All these keywords.

    JEL classification:

    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations

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