The New View of the Property Tax: A Reformulation
Working Paper 1481
DOI 10.3386/w1481
Issue Date
The"new view" of the property tax is reformulated within the context of a model with interjurisdictional competition, endogenous local public services, individuals who are segregated into homogeneous communities according to tastes for local public services, a simple form of land use zoning, and a political or constitutional constraint on the use of head taxes by local governments. Expressions for the "profits tax" and"excise tax" effects of the property tax are derived. The effects of a "consumption distortion" away from government services due to local reluctance to tax mobile capital are also examined.
Published Versions
Regional Science and Urban Economics, Vol. 16, no. 3, (August 1986): pp. 309-327. citation courtesy of