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On the Measurement of Benefits in an Urban Context: Some General Equilibrium Issues

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Paul Courant
Daniel L. Rubinfeld

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Abstract

The validity of using local market data to measure the benefits associated with policies adopted in an urban area is investigated .It is shown that the rest of the world is affected by taxing decisions undertaken in a single urban area, so that local data cannot perfectly measure the welfare effects of a policy change. Specifically, the fact that the willingness to pay for a tax increase is positive in the rest of the world suggests that cost-benefit analyses which do not account for the rest of the world may be biased.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 0114.

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Date of creation: Nov 1975
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Handle: RePEc:nbr:nberwo:0114

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References listed on IDEAS
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.:
  1. Krauss, Melvyn B, 1972. "Differential Tax Incidence: Large versus Small Tax Changes," Journal of Political Economy, University of Chicago Press, vol. 80(1), pages 193-97, Jan.-Feb.. [Downloadable!] (restricted)
  2. Harberger, Arnold C, 1971. "Three Basic Postulates for Applied Welfare Economics: An Interpretive Essay," Journal of Economic Literature, American Economic Association, vol. 9(3), pages 785-97, September. [Downloadable!] (restricted)
  3. Polinsky, A. Mitchell & Rubinfeld, Daniel L., 1978. "The long-run effects of a residential property tax and local public services," Journal of Urban Economics, Elsevier, vol. 5(2), pages 241-262, April. [Downloadable!] (restricted)
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