IDEAS home Printed from https://ideas.repec.org/p/fda/fdaeee/eee2017-05.html
   My bibliography  Save this paper

Expansionary zoning and the strategic behavior of local governments. Evidence from Spain

Author

Listed:
  • Miriam Hortas-Rico
  • Miguel Gómez-Antonio

Abstract

This paper analyzes the extent to which local land supply is the result of strategic interaction among local governments. In a setting of limited tax instruments to raise revenues and interjurisdictional competition for mobile residents, municipal authorities are provided with the economic incentives to convert land from rural to urban uses, hence promoting urban growth. Using data on Spanish municipalities from 2003 to 2011, we report evidence in support of this hypothesis. The results suggest that local incumbents do not make policy decisions in isolation: reaction functions arise because the mobile tax base reacts to the regulatory measures that modify land uses in the municipality, leading to an inneficient excess of land devoted to urban development.

Suggested Citation

  • Miriam Hortas-Rico & Miguel Gómez-Antonio, 2017. "Expansionary zoning and the strategic behavior of local governments. Evidence from Spain," Studies on the Spanish Economy eee2017-05, FEDEA.
    • Handle: RePEc:fda:fdaeee:eee2017-05
    as

    Download full text from publisher

    File URL: https://documentos.fedea.net/pubs/eee/eee2017-05.pdf
    Download Restriction: no
    ---><---

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fda:fdaeee:eee2017-05. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Carmen Arias (email available below). General contact details of provider: https://www.fedea.net .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.