Spatial and Dynamic Features of Land Value Capture: A Case Study from Bogotá, Colombia

This article assesses the neutrality of Captura de Plusvalía, a land value capture policy implemented in Bogotá (Colombia) in 2004. The case offers a rare opportunity for assessment because the policy application had a scattered spatial and temporal structure but on an urban agglomeration ruled by a single master plan and revenue collecting authority. The analysis reveals that (a) the relationship between value capture and prices is negative (static neutrality); (b) this result holds under various spatial specifications and controls; (c) the policy is not endogenous to the built output or the spatial distribution of the land prices; and (d) there is no evidence of preemption, a theoretical feature where landowners consider that the policy onset represents a regulatory taking, compelling them to accelerate developing timing (dynamic neutrality)