Impact of Local Public Services and Taxes on Dwelling Choice within a Single Taxing Jurisdiction: A Discrete Choice Model
AbstractDiscrete choice models of household location assume local public finance variables remain the same within a given taxing jurisdiction. Thus far, no such model has tested the validity of this assumption. This study employs McFadden’s (1978, 2001) discrete choice model to test for the significance of dwelling specific local taxes and public services on household location decisions within a single taxing jurisdiction. The findings indicate that such variables are significant determinants of location decisions even within a single taxing jurisdiction, and should not be assumed away. Failure to include such variables in a model may, therefore, result in biased statistical results.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by American Real Estate Society in its journal journal of Real Estate Research.
Volume (Year): 27 (2005)
Issue (Month): 4 ()
Contact details of provider:
Postal: American Real Estate Society Clemson University School of Business & Behavioral Science Department of Finance 401 Sirrine Hall Clemson, SC 29634-1323
Web page: http://www.aresnet.org/
Postal: Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323
Find related papers by JEL classification:
- L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Allen C. Goodman, 1983. "Capitalization of Property Tax Differentials within and among Municipalities," Land Economics, University of Wisconsin Press, vol. 59(2), pages 211-219.
- Michael S. Johnson & Michael J. Lea, 1982. "Differential Capitalization of Local Public Service Characteristics," Land Economics, University of Wisconsin Press, vol. 58(2), pages 189-203.
- Daniel McFadden, 1977. "Modelling the Choice of Residential Location," Cowles Foundation Discussion Papers 477, Cowles Foundation for Research in Economics, Yale University.
- Diane P. Krantz & Robert D. Weaver & Theodore R. Alter, 1982. "Residential Property Tax Capitalization: Consistent Estimates Using Micro-Level Data," Land Economics, University of Wisconsin Press, vol. 58(4), pages 488-496.
- King, Mervyn A., 1980. "An econometric model of tenure choice and demand for housing as a joint decision," Journal of Public Economics, Elsevier, vol. 14(2), pages 137-159, October.
- Wales, T J & Wiens, E G, 1974. "Capitalization of Residential Property Taxes: An Empirical Study," The Review of Economics and Statistics, MIT Press, vol. 56(3), pages 329-33, August.
- Thomas J. Nechyba & Robert P. Strauss, 1997.
"Community Choice and Local Public Services: A Discrete Choice Approach,"
NBER Working Papers
5966, National Bureau of Economic Research, Inc.
- Nechyba, Thomas J. & Strauss, Robert P., 1998. "Community choice and local public services: A discrete choice approach," Regional Science and Urban Economics, Elsevier, vol. 28(1), pages 51-73, January.
- W. Cris Lewis & Paul J. McNutt, 1979. "The Incidence of Property Taxes on Single-Family Housing," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 7(3), pages 344-361.
- Shunfeng Song, 1996. "Some Tests of Alternative Accessibility Measures: A Population Density Approach," Land Economics, University of Wisconsin Press, vol. 72(4), pages 474-482.
- Mervyn A. King, 1980. "An econometric model of tenure choice and demand for housing as a joint decision," NBER Chapters, in: Econometric Studies in Public Finance, pages 137-159 National Bureau of Economic Research, Inc.
- Lee, Lung-Fei & Trost, Robert P., 1978. "Estimation of some limited dependent variable models with application to housing demand," Journal of Econometrics, Elsevier, vol. 8(3), pages 357-382, December.
- Oates, Wallace E, 1969. "The Effects of Property Taxes and Local Public Spending on Property Values: An Empirical Study of Tax Capitalization and the Tiebout Hypothesis," Journal of Political Economy, University of Chicago Press, vol. 77(6), pages 957-71, Nov./Dec..
- Patrick Bayer & Robert McMillan & Kim Rueben, 2005.
"Residential Segregation in General Equilibrium,"
NBER Working Papers
11095, National Bureau of Economic Research, Inc.
- Ellickson, Bryan, 1981. "An alternative test of the hedonic theory of housing markets," Journal of Urban Economics, Elsevier, vol. 9(1), pages 56-79, January.
- Witte, Ann D & Sumka, Howard J & Erekson, Homer, 1979. "An Estimate of a Structural Hedonic Price Model of the Housing Market: An Application of Rosen's Theory of Implicit Markets," Econometrica, Econometric Society, vol. 47(5), pages 1151-73, September.
- Anas, Alex & Chu, Chaushie, 1984. "Discrete choice models and the housing price and travel to work elasticities of location demand," Journal of Urban Economics, Elsevier, vol. 15(1), pages 107-123, January.
- Gabriel, Stuart A & Rosenthal, Stuart S, 1989. "Household Location and Race: Estimates of Multinomial Logit Model," The Review of Economics and Statistics, MIT Press, vol. 71(2), pages 240-49, May.
- Patrick Bajari & Matthew E. Kahn, . "Why Do Blacks Live in The Cities and Whites Live in the Suburbs?," Working Papers 00007, Stanford University, Department of Economics.
- Rosen, Harvey S & Fullerton, David J, 1977. "A Note on Local Tax Rates, Public Benefit Levels, and Property Values," Journal of Political Economy, University of Chicago Press, vol. 85(2), pages 433-40, April.
- G. Donald Jud, 1985. "A Further Note on Schools and Housing Values," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 13(4), pages 452-462.
- King, A Thomas, 1977. "Estimating Property Tax Capitalization: A Critical Comment," Journal of Political Economy, University of Chicago Press, vol. 85(2), pages 425-31, April.
- Sean P. Salter & Ernest W. King, 2009. "Price Adjustment and Liquidity in a Residential Real Estate Market with an Accelerated Information Cascade," Journal of Real Estate Research, American Real Estate Society, vol. 31(4), pages 421-454.
- M. Du Preez & M.C. Sale, 2012. "Determining the impact of low-cost housing development on nearby property prices using discrete choice analysis," Working Papers 265, Economic Research Southern Africa.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (JRER Graduate Assistant/Webmaster).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.