IDEAS home Printed from https://ideas.repec.org/a/taf/jpropr/v20y2003i2p157-172.html
   My bibliography  Save this article

Local property taxes and moral hazard

Author

Listed:
  • Svante Mandell

Abstract

A double moral hazard approach is used to address efficiency issues associated with local property taxes. It is shown that a local property tax will not lead to an efficient solution. However, despite its inefficiencies it is shown to be in both the local government's and in the property owners' interests to implement such a tax. The underlying reason is that the tax will provide the local government with incentives to take actions that are beneficial for the property owners. Furthermore, the question of risk aversion and its impact on a local property tax is discussed. This is argued to be dependent on what sources of risk exist. Two risk-sources are addressed in the paper. The first stems from uncertainty between actions and resulting revenues, the second from uncertainty in approximating the actual revenues. Both affect the results from the model but in opposite directions and hence the net effect of risk aversion is ambiguous.

Suggested Citation

  • Svante Mandell, 2003. "Local property taxes and moral hazard," Journal of Property Research, Taylor & Francis Journals, vol. 20(2), pages 157-172, January.
    • Handle: RePEc:taf:jpropr:v:20:y:2003:i:2:p:157-172
    DOI: 10.1080/0959991032000109526
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/0959991032000109526
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/0959991032000109526?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Roland Andersson & Bo Söderberg, 2012. "Financing roads and railways with decentralized real estate taxes: the case of Sweden," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(3), pages 839-853, June.
    2. M.G. Lloyd, 2008. "Towards a ‘Pooled Sovereignty‘ in Community Planning in Scotland?," Local Economy, London South Bank University, vol. 23(1), pages 58-68, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jpropr:v:20:y:2003:i:2:p:157-172. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RJPR20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.