Urban Studies and Planning Commons^™

Making – Or Picking – Winners: Evidence Of Internal And External Price Effects In Historic Preservation Policies, Douglas S. Noonan, Douglas J. Krupka

Douglas S. Noonan

Much has been written identifying property price effects of historic preservation policies. Little attention has been paid to the possible policy endogeneity in hedonic price models. This paper outlines a general case of land use regulation in the presence of externalities and then demonstrates the usefulness of the model in an instrumental-variables estimation of a hedonic price analysis – with an application to historic preservation in Chicago. The theoretical model casts doubt on previous results concerning price effects of preservation policies. The comparative statics identify some determinants of regulation that seem, on the face of it, most unlikely to also …