State Intervention in Local Land Use Decision Making: The Case of Massachusetts

30 Pages Posted: 18 Jun 2013

Multiple version iconThere are 2 versions of this paper

Date Written: Summer 2013

Abstract

The permitting process for residential development in the United States is largely administered by local governments. This article empirically assesses the responsiveness of local decision makers to a state‐mandated permitting process that may require them to ignore or override locally adopted land use regulations. I develop a screening model to formalize expectations about permitting outcomes between developers, who hold private information about their projects, and local Zoning Boards of Appeal under the rules of the Massachusetts law known as Chapter 40B. I then analyze a novel data set of 40B permit applications made during the period 1999–2005. I examine summary statistics and estimate a bivariate probit model with selection in order to jointly evaluate the determinants of local permit approvals and developer acceptances of permits. I find that, in general, local institutions comply with the state‐mandated permitting process and that permits granted to developers typically result in housing production. I also find that information asymmetries and community characteristics influence the success of the permitting process in a manner consistent with this study's screening model.

Suggested Citation

Fisher, Lynn M., State Intervention in Local Land Use Decision Making: The Case of Massachusetts (Summer 2013). Real Estate Economics, Vol. 41, Issue 2, pp. 418-447, 2013. Available at SSRN: https://ssrn.com/abstract=2281000 or http://dx.doi.org/10.1111/j.1540-6229.2012.00340.x

Lynn M. Fisher (Contact Author)

Mortgage Bankers Association ( email )

1919 M Street NW
Washington, DC 20006-3404
United States

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