| Abstract: | This paper tests two hypotheses: (1) that large lot zoning is a binding constraint on the residential land market and (2) that subdivision costs are inversely related to lot size. The paper shows that, in general, the two hypotheses are not mutually exclusive but that they can be distinguished in the case of a test conducted across tracts of unsubdivided vacant land. A hedonic price model for vacant land is developed and then estimated using disaggregate data from a New York City suburb. |
