Title

An Econometric Analysis of Land Development with Endogenous Zoning

Document Type

Article

Publication Date

8-1-2011

Publication Title

Land Economics

Department

Economics

Abstract

Zoning is a widely used tool to manage residential growth. Estimating the effect of zoning on development, however, is difficult because zoning can be endogenous in models of land conversion. We compare three econometric methods that account for selection bias in a model of land conversion: a jointly estimated probit-logit model, propensity score matching, and regression discontinuity. Our results suggest that not accounting for selection bias leads to erroneous estimates. After correcting for selection bias we find that zoning has no effect on a landowner’s decision to subdivide in a rural Wisconsin county.

Volume

87

Issue

3

pp.

412-432

ISSN

0023-7639