Inclusionary Zoning in a Monocentric City

Lewis Lehe

Institute of Transportation Studies, Research Reports, Working Papers, Proceedings from Institute of Transportation Studies, UC Berkeley

Abstract: To show how inclusionary zoning alters development, the author finds the most profitable housing design to build on vacant lots at each location in a monocentric city under different regulatory regimes. Section 1 sets up the model by specifying renter's preferences, geography and building parameters. Section 2 solves the developer's profit-maximization problem at each location under each regime. Finally, in Section 3, a numerical simulation confirms the effects predicted by theory and gives a picture of their magnitude.

Keywords: Social and Behavioral Sciences; Zoning; Regulation; Housing costs; Price controls; Affordability (search for similar items in EconPapers)
Date: 2014-11-03
New Economics Papers: this item is included in nep-ure
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