SPACE AND TIME: A COMPETING RISKS ANALYSIS OF THE IMPACT OF PROPERTY TAXES AND ZONING RESTRICTIONS ON RESIDENTIAL DEVELOPMENT

Douglas H. Wrenn, H. Allen Klaiber

Research output: Contribution to journalArticlepeer-review

Abstract

Property taxes and zoning restrictions are prevalent tools for managing land use. We combine microlevel data on residential subdivision development from the Baltimore, Maryland, metro area from 1994 to 2007 with a competing risks model to examine how both policies influence the density and timing of residential development. Consistent with theory, we demonstrate that the impact of both policies on optimal density and timing depends on whether density and time are substitutes or complements in the profit function. Our results have important implications as they provide key empirical insights into how property taxes and zoning interact to influence development patterns.

Original languageEnglish (US)
Pages (from-to)1097-1130
Number of pages34
JournalInternational Economic Review
Volume60
Issue number3
DOIs
StatePublished - 2019

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

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