Space and Time: A Competing Risks Analysis of the Impact of Property Taxes and Zoning Restrictions on Residential Development

71 Pages Posted: 20 Mar 2017 Last revised: 23 Jul 2018

See all articles by Douglas H. Wrenn

Douglas H. Wrenn

Pennsylvania State University, Agricultural Economics, Sociology, and Education

H. Allen Klaiber

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

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Date Written: July 12, 2018

Abstract

Property taxes and zoning restrictions are prevalent tools for managing urban land use. In this paper, we combine micro-level data on residential subdivision development from a three-county region in the Baltimore, Maryland metro from 1994-2007 with an IV competing risks model to examine how both policies influence the density and timing of residential development outcomes. 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 about how property taxes and zoning interact to influence development patterns within an urban landscape.

Keywords: Property Taxes, Zoning, Residential Development; Endogeneity

JEL Classification: C26, R14, R31

Suggested Citation

Wrenn, Douglas H. and Klaiber, H. Allen, Space and Time: A Competing Risks Analysis of the Impact of Property Taxes and Zoning Restrictions on Residential Development (July 12, 2018). Available at SSRN: https://ssrn.com/abstract=2935386 or http://dx.doi.org/10.2139/ssrn.2935386

Douglas H. Wrenn (Contact Author)

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

University Park, PA 16802-3306
United States

H. Allen Klaiber

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

2120 Fyffe Rd
Columbus, OH 43210-1067
United States

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