We examine the working mechanisms and efficiencies of zoning (regulation of floor area ratios and land-use types) and fiscal instruments (tolls, property taxes, and income transfer), and extend the instrument choice theory to include the congestion of road and nonroad infrastructure. We show...

We analyze land use regulations in cities with traffic congestion and production spillovers. Land is allocated between residential and industrial uses inside the city boundary or between urban and rural uses at the city boundary. The production is dispersed over the city, and people and firms...