Not My Problem: Growth Spillovers from Uncoordinated Land Use Policy

34 Pages Posted: 9 Sep 2015 Last revised: 28 Apr 2017

See all articles by Charles Towe

Charles Towe

University of Connecticut - Department of Agricultural and Resource Economics and the National Center for Smart Growth

H. Allen Klaiber

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics

Douglas H. Wrenn

Pennsylvania State University, Agricultural Economics, Sociology, and Education

Date Written: April 26, 2017

Abstract

Land use policy is administered at the local level in the U.S. However, many of the benefits and costs have broader spatial impacts. Thus, a lack of coordination across local jurisdictions may lead to unintended spillovers. Using historical data from the Baltimore, Maryland metro, we examine the impact that an extensive zoning policy change in Baltimore County had on new housing supply in surrounding counties. Defining treatment and control locations in surrounding counties based on their adjacency to Baltimore County, we find that the change in zoning policy led to an increase in housing supply of 42%-97% in adjacent counties. In both spatial and temporal falsification tests, we fail to find evidence of a spillover effect suggesting that the increased development was likely the result of spillovers from uncoordinated policy.

Keywords: Housing Supply, Land Use Regulation, Spatial Spillovers, Urban Economics

JEL Classification: Q15, R14, R21, R30

Suggested Citation

Towe, Charles and Klaiber, H. Allen and Wrenn, Douglas H., Not My Problem: Growth Spillovers from Uncoordinated Land Use Policy (April 26, 2017). Available at SSRN: https://ssrn.com/abstract=2657751 or http://dx.doi.org/10.2139/ssrn.2657751

Charles Towe

University of Connecticut - Department of Agricultural and Resource Economics and the National Center for Smart Growth ( email )

1376 Storrs Rd
University of Connecticut
Storrs, CT 20742
United States

HOME PAGE: http://www.are.uconn.edu/faculty_charlestowe.php

H. Allen Klaiber

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics ( email )

2120 Fyffe Rd
Columbus, OH 43210-1067
United States

Douglas H. Wrenn (Contact Author)

Pennsylvania State University, Agricultural Economics, Sociology, and Education ( email )

University Park, PA 16802-3306
United States

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