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Estimates the effect of development charges--fees paid by residential developers to localities as a prerequisite to the development process--on residential development location choice. An econometric model, using data from 15 cities of Santa Clara County for the years 1966 to 1973, supports the hypothesis that the use of development charges is a relevant policy tool available to localities for the purpose of influencing the rate and pattern of development. This report reviews four alternative pricing policies; some of the policies impose higher costs on the developer than others, and hence would be stronger deterrents to growth. While pricing policy can act to curb growth, it cannot place enforceable ceilings on the rate of growth. Therefore, pricing policy cannot be recommended as an effective growth control strategy. It should play a role, however, in an integrated policy of growth management. (See also R-1878/1, R-1878/2, R-1878/4.)

This report is part of the RAND Corporation report series. The report was a product of the RAND Corporation from 1948 to 1993 that represented the principal publication documenting and transmitting RAND's major research findings and final research.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.