Abstract
The paper is a study in positive economics. Two- and three-sector models are used to determine the effects on urban land and housing markets of land use controls such as minimum lot size, maximum density, and maximum bulk requirements. The effects of these controls on rural-urban land conversion and on the effects of property taxes on urban land markets are also investigated. The land use requirements are found to accelerate rural-urban land conversion in some cases and affect the impact of property taxes on urban land and housing markets.
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