The purpose of this teaching note is to introduce students to the basic economic arguments regarding land use zoning. To this end, a simple yet versatile diagram is introduced to graphically illustrate several key eco nomic concepts, including con strained and unconstrained equilib rium, aggregate value, market value, and market failure. It is the fixed na ture of the total supply of land that makes this exposition possible, and that distinguishes it from the usual textbook treatment of supply and demand.
Get full access to this article
View all access options for this article.
References
1.
Boadway, R., and Wildasin, D.E.1984. Public Sector Economics, 2nd ed. Boston: Little, Brown and Co.
2.
Crone, T.M.1983. Elements of an economic justification for municipal zoning . Journal of Urban Economics14:168-183.
3.
Davis, O.1963. Economic elements in municipal zoning decisions . Land Economics39 (November):375-386.
4.
Fischel, W.A.1978. Equity and efficiency aspects of zoning reform . Public Policy27 (Summer):301-322.
5.
—. 1985. The Economics of Zoning Laws: A Property Rights Approach to American Land Use Controls. Baltimore: Johns Hopkins University Press.
6.
Heikkila, E., and Hutton, T.A.1986. Toward an evaluative framework for land use policy in industrial districts of the urban core. Urban Studies23:47-60.
7.
Mills, E.S., and Hamilton, B.W.1989. Urban Economics, 4th ed. Glenview, Illinois. Scott, Foresman and Co.
8.
Nicholas, J., and Nelson, A.1988. Determining the appropriate development impact fee using the rational nexus test. Journal of the American Planning Association54(1):56-66.
9.
Stull, W.J.1974. Land use and zoning in an urban economy. American Economic Review64(3):337-347.
