This paper aims to quantify the municipal tax revenue effects of built-up area increases. The assumed existence of these effects is one of the key reasons for ongoing land consumption on the side of the municipalities. Some previous case studies however suggested that these effects might be not...

This paper explores the effects of fiscal competition on local land use. A theoretical analysis considers the tradeoff faced by a local government deciding about the amount of land made available for commercial or residential uses, when its expansion has adverse effects on the quality of life....

For a monocentric city with traffic congestion, Wheaton [W. C. Wheaton, Land Use and Density in Cities with Congestion, Journal of Urban Economics, 43 (1998) 258-272] describes that, to optimize the congestion externality, lot size zoning requires upward adjustment to the market population...

In a continuous city with three distinct land use zones consisting of firms, condominiums and detached houses, we derive the formulae – composed entirely of observable variables – which design simultaneous optimization of regulations on building size, lot size and zonal boundaries under the...

How should urban containment and the diversion of households to nearby residential areas be evaluated from a welfare economic perspective? Assuming the existence of a negative externality of city size, we develop a concise general equilibrium model for a mother city and a satellite. This...

Larger cities typically give rise to two opposite effects: tougher competition among firms and higher production costs. Using an urban model with substitutability of production factors and pro-competitive effects, I study the response of the market outcome to city size, land-use regulations, and...

This paper investigates second-best congestion pricing in a monocentric city characterized by distortionary, rigid regulatory mechanisms in the housing market (building height restrictions, zoning and property taxation). The Pigouvian toll is shown to retain its optimality under any setting with...