Property Tax and Urban Sprawl. Theory and Implications for U.S. Cities
AbstractThis article attempts a formal analysis of the connection between property tax and urban sprawl in U.S. cities. We develop a theoretical model that includes households (who are also landlords) and land developers in a regional land market. We then test the model empirically based on a national sample of urbanized areas. The results we obtained from both theoretical and empirical analyses indicate that increasing property tax rates reduces the size of urbanized areas.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 5345.
Date of creation: Nov 2005
Date of revision:
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Other versions of this item:
- Song, Yan & Zenou, Yves, 2006. "Property tax and urban sprawl: Theory and implications for US cities," Journal of Urban Economics, Elsevier, vol. 60(3), pages 519-534, November.
- Song, Yan & Zenou, Yves, 2005. "Property Tax and Urban Sprawl: Theory and Implications for U.S. Cities," Working Paper Series 648, Research Institute of Industrial Economics.
- H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
- H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
- R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-12-09 (All new papers)
- NEP-GEO-2005-12-09 (Economic Geography)
- NEP-PBE-2005-12-09 (Public Economics)
- NEP-URE-2005-12-09 (Urban & Real Estate Economics)
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