Modelling land development processes using a sample selection regression

ABSTRACT

Land value tax has been thoroughly scrutinized as a potential tool in mitigating urban sprawl. However, most studies that have measured the impact of land value tax on land development have focused mainly either on purely new development on vacant land, or on land development on partially developed land such as subdivision development. This study tries to incorporate these two types of residential development conceptually and empirically to make an accurate assessment of the impact of land value tax on land development.

KEYWORDS:

• Land development
• sample selection regression
• land value tax
• parcel fragmentation

JEL CLASSIFICATION:

• R14
• R52

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

This research was supported by Kyungpook National University A.S Research Fund, 2013. Views expressed are the authors’ alone and do not necessarily correspond to those of Kyungpook National University or U.S. Department of Agriculture. The first author thanks University of Tennessee for the graduate assistantship support in that data used in the analysis were collected during the period.