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| Adelaja, Adesoji O.; Chaudhuri, Malika. |
| The distribution of lot sizes and associated improvements affect property values. Hence, zoning affects municipal property tax revenues. If optimal lot size is inconsistent with the targeted zoning density in a community, municipal revenue can be increased through zoning change. This paper theoretically derives the optimal lot size that maximizes tax revenues as a function of the elasticities of improvement value and lot size prices with respect to density, and the elasticities of land and improvement demand with respect to lot size. Empirical hedonic pricing model estimates for a Michigan Community suggest that the optimal lot size for recently sold property is lower than current zoning on existing properties. The possibility that municipal revenue can... |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Optimal lot-size; Municipal revenue maximization; Zoning; Hedonic pricing; Financial Economics. |
| Ano: 2007 |
URL: http://purl.umn.edu/9779 |
