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Zoning and the Economic Geography of Cities

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  • Allison Shertzer
  • Tate Twinam
  • Randall P. Walsh

Abstract

Comprehensive zoning is ubiquitous in U.S. cities, yet we know surprisingly little about its long-run impacts. We provide the first attempt to measure the causal effect of land use regulation over the long term, using as our setting Chicago’s first (1923) comprehensive zoning ordinance. Our results indicate that zoning has had a broader and more significant impact on the spatial distribution of economic activity than was previously believed. In particular, zoning may be more important than either geography or transportation networks – the workhorses of urban economic geography models – in explaining where commercial and industrial activity are located.

Suggested Citation

  • Allison Shertzer & Tate Twinam & Randall P. Walsh, 2016. "Zoning and the Economic Geography of Cities," NBER Working Papers 22658, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:22658
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    JEL classification:

    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • N42 - Economic History - - Government, War, Law, International Relations, and Regulation - - - U.S.; Canada: 1913-
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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