Abstract
The paper presents a model in which land values are influenced by the mix of land use on the block. Conditions for land-value maximization are derived, and the circumstances under which land-use zoning can increase land values are discussed. A necessary condition for the assignment of a block exclusively to residential use to increase land values is that residential land values rise as the proportion of the block that is in residential use increases. Empirical land-value functions are estimated for Chicago in 1921, two years before the first zoning ordinance was adopted. The empirical results imply that the land-use zoning system adopted in 1923 could not have brought about a general increase in land values. A model of the zoning decision for land use at the block level is also estimated.
Original language | English (US) |
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Pages (from-to) | 167-188 |
Number of pages | 22 |
Journal | Journal of Urban Economics |
Volume | 33 |
Issue number | 2 |
DOIs | |
State | Published - Mar 1993 |
Externally published | Yes |
ASJC Scopus subject areas
- Economics and Econometrics
- Urban Studies