The effect of risk on the effect of a land tax: A simulation
AbstractThe inelastic supply of land suggests that taxation of land might be neutral. Feldstein (1977) suggests otherwise, in that taxation reduces risk, and this may raise demand among risk-averse lenders. We simulate the effect of this demand increase and find that the impact in the aggregate is neutral, because many households are risk-loving in housing assets. The effects on individuals are less negligible.
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Bibliographic InfoArticle provided by Elsevier in its journal Regional Science and Urban Economics.
Volume (Year): 40 (2010)
Issue (Month): 6 (November)
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Land tax Tax neutrality;
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