Urban Economic Approach to the Evaluation of Zoning Ordinance

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1. It was rigorously verified that both minimum lot size zoning and FAR regulation necessarily lower the welfare of residents under absentee land ownership while tending to increase the total differential land rent in a city. This conclusion can be shown for a more general setting, without specifying a utility function.2. The numerical simulation based on a simplified linear city model shows that nuisance zoning generally causes a trade-off between the welfare of residents and landowners. Such a trade-off always emerges in the presence of large agglomeration economics, where stricter zoning is more favorable to residents.3. Under the optional zoning to maximize the welfare of current residents the sum of the value of marginal disutility due to expanded industry-operation district for both current and new residents is just equal to the increased total wage income for new residents.