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

34 Pages Posted: 22 May 2020

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: August 2019

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.

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 (August 2019). International Economic Review, Vol. 60, Issue 3, pp. 1097-1130, 2019, Available at SSRN: https://ssrn.com/abstract=3602073 or http://dx.doi.org/10.1111/iere.12380

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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