Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/144991
Authors: 
Boskovic, Branko
Nøstbakken, Linda
Year of Publication: 
2016
Series/Report no.: 
CESifo Working Paper 5956
Abstract: 
Regulation often evolves, and affected consumers or firms may adjust their behavior in anticipation of potential changes to regulation. Using shifting land use regulation boundaries and oil lease prices from Canada, we estimate the effect of anticipated regulatory change on the value of land. We find that anticipated rezoning decreases the price of unregulated leases. Based on our estimates, not accounting for anticipation underestimates the total cost of the regulation by nearly one-third. Overall, the evidence suggests that anticipation effects are significant and that the cost of anticipated regulation is capitalized into land values.
Subjects: 
regulation
anticipation
land values
zoning
oil leases
endangered species
JEL: 
Q58
D44
Q52
Q30
Document Type: 
Working Paper

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