Spatial Spillovers of Land Use Regulation in the United States

Evidence of spatial dependence in land use regulatory levels was first found in Brueckner (1998 Brueckner, J. (1998) Testing for strategic interaction among local governments: The case of growth controls, Journal of Urban Economics, 44, pp. 438–467.Crossref], Web of Science ®] , Google Scholar]) for California cities. Recent research has not incorporated this consideration despite the considerable consequences of the relationship. We seek to expand the empirical find ings to a current, larger and more diverse data-set for municipalities across the USA. Analyzing regulatory levels and their determinants from over 2000 municipalities, we find strong evidence of spatial dependence at the local level even after controlling for geographic and political influences. This suggests that political competition, rather than welfare maximization exclusively, may be influencing the level of regulations adopted.