RT Journal Article
SR Electronic
T1 Spatial Planning and Segmentation of the Land Market: The Case of the Netherlands
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 137
OP 154
DO 10.3368/le.94.1.137
VO 94
IS 1
A1 Levkovich, Or
A1 Rouwendal, Jan
A1 Brugman, Lars
YR 2018
UL http://le.uwpress.org/content/94/1/137.abstract
AB Zoning restrictions often exclusively permit one or a few particular types of land use. If the tightness of restrictions differs between land uses, the result may be that the market for land splits into segments referring to particular uses, because the arbitrage mechanism between various land use types is turned off. We provide evidence of such a segmentation of the Dutch land market into three compartments: agricultural, commercial, and residential use. We analyze transactions of ready-to-be developed land and find that residential land is much more expensive than commercial land. We also find that agricultural land is much cheaper than residential and commercial land. (JEL R21, R52)