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Land-use Controls, Fiscal Zoning, and the Local Provision of Education

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  • Eric A. Hanushek
  • Kuzey Yilmaz

Abstract

Considerable prior analysis has gone into the study of zoning restrictions on locational choice and on fiscal burdens, but none addresses the level and distribution of public goods provided under fiscal zoning. Our analysis emphasizes the interplay between land-use restrictions and public good provision, focusing on schooling outcomes. We extend existing general equilibrium models of location and the provision of education so that fiscal zoning can be put into Tiebout choice. Some households create a fiscal burden, motivating the use of exclusionary land-use controls by local governments. We then analyze the market effects of different land-use controls (minimum lot size [MLS] zoning, local public finance with a head tax, and growth restrictions through fringe zoning) and demonstrate how household behavior directly affects the equilibrium outcomes and the provision of the local public good.

Suggested Citation

  • Eric A. Hanushek & Kuzey Yilmaz, 2015. "Land-use Controls, Fiscal Zoning, and the Local Provision of Education," Public Finance Review, , vol. 43(5), pages 559-585, September.
    • Handle: RePEc:sae:pubfin:v:43:y:2015:i:5:p:559-585
    DOI: 10.1177/1091142114524618
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    References listed on IDEAS

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    10. Eric A. Hanushek & Kuzey Yilmaz, 2013. "Schools and Location: Tiebout, Alonso, and Governmental Finance Policy," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 15(6), pages 829-855, December.
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    Cited by:

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    2. Gallagher, Ryan M., 2016. "The fiscal externality of multifamily housing and its impact on the property tax: Evidence from cities and schools, 1980–2010," Regional Science and Urban Economics, Elsevier, vol. 60(C), pages 249-259.
    3. Gong, Yifan & Leung, Charles Ka Yui, 2020. "When education policy and housing policy interact: Can they correct for the externalities?," Journal of Housing Economics, Elsevier, vol. 50(C).
    4. Yan Song & Jiang Zhou & Yingjie Zhang & Dingxin Wu & Honghai Xu, 2022. "How Much Are Amenities Worth? An Empirical Study on Urban Land and Housing Price Differentials across Chinese Cities," Land, MDPI, vol. 11(6), pages 1-16, June.
    5. Marco Rossitti & Marta Dell’Ovo & Alessandra Oppio & Francesca Torrieri, 2021. "The Italian National Strategy for Inner Areas (SNAI): A Critical Analysis of the Indicator Grid," Sustainability, MDPI, vol. 13(12), pages 1-22, June.

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