The Journal of Real Estate Finance and Economics
Volume 12, Issue 2, Article 1 (Abstract)
Title:	Zoning and Fiscal Interdependencies
Author:	MaryJane Lenon, Sajal K. Chattopadhyay and Dennis R. Heffley
Abstract:	Although there are strong theoretical reasons to regard optimal zoning and fiscal policies as simultaneous decisions, most empirical studies have focused on one type of decision or the other. Even fewer attempts have been made to study interdependencies between competing towns in their selection of zoning and fiscal policies. if these interdependencies are prevalent, autonomous local governments may pursue zoning, taxing and spending policies that are locally rational but socially inefficient. In this study, an optimization model of the local economy is used to illustrate the nature of these interdependencies and to specify an appropriate empirical test. Data from 164 Connecticut townships are used to estimate the empirical model.
Keywords:	zoning, fiscal, interdependencies, property taxes, land-use controls, local government