RT Journal Article
SR Electronic
T1 An Econometric Analysis of Land Development with Endogenous Zoning
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 412
OP 432
DO 10.3368/le.87.3.412
VO 87
IS 3
A1 Van Butsic
A1 David J. Lewis
A1 Lindsay Ludwig
YR 2011
UL http://le.uwpress.org/content/87/3/412.abstract
AB 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. (JEL Q24, R14)