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How Do Differences In Property Taxes Within Cities Affect Urban Sprawl?

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  • Yan Song
  • Yves Zenou

Abstract

We develop a duocentric-city model and show that the ratio between the property tax in the suburbs and in the center has an ambiguous impact on the size of the city. We test this model by using a dataset of effective property tax rates which we developed using GIS techniques for central cities and suburbs in 445 urbanized areas. Results from the empirical analyses suggest that a lower property tax rate in the suburbs as compared to the central city is associated with more expansive urban growth and a greater level of decentralization of population and employment. Copyright (c) 2009, Wiley Periodicals, Inc.

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  • Yan Song & Yves Zenou, 2009. "How Do Differences In Property Taxes Within Cities Affect Urban Sprawl?," Journal of Regional Science, Wiley Blackwell, vol. 49(5), pages 801-831.
  • Handle: RePEc:bla:jregsc:v:49:y:2009:i:5:p:801-831
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    References listed on IDEAS

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    Cited by:

    1. Deininger,Klaus W. & Jin,Songqing & Liu,Shouying & Shao,Ting & Xia,Fang, 2015. "Impact of property rights reform to support China?s rural-urban integration : village-level evidence from the Chengdu national experiment," Policy Research Working Paper Series 7389, The World Bank.
    2. Lehmann, Etienne & Montero Ledezma, Paola L. & Linden, Bruno Van der, 2016. "Workforce location and equilibrium unemployment in a duocentric economy with matching frictions," Journal of Urban Economics, Elsevier, vol. 91(C), pages 26-44.
    3. Ermini, Barbara & Santolini, Raffaella, 2015. "Differentiated property tax and urban sprawl in Italian urbanized areas," MPRA Paper 65460, University Library of Munich, Germany.
    4. Groves, Jeremy R., 2009. "The impact of positive property tax differentials on the timing of development," Regional Science and Urban Economics, Elsevier, vol. 39(6), pages 739-748, November.
    5. Deininger, Klaus & Jin, Songqing & Liu, Shouying & Xia, Fang, 2015. "Household-level impacts of property rights reform in peri-urban China: Evidence from the Chengdu National Experiment," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205753, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    6. Deininger,Klaus W. & Jin,Songqing & Liu,Shouying & Xia,Fang, 2015. "Impact of property rights reform to support China?s rural-urban integration : household-level evidence from the Chengdu national experiment," Policy Research Working Paper Series 7388, The World Bank.
    7. Rafael González‐Val, 2010. "The Evolution Of U.S. City Size Distribution From A Long‐Term Perspective (1900–2000)," Journal of Regional Science, Wiley Blackwell, vol. 50(5), pages 952-972, December.
    8. Li, Jun, 2011. "Decoupling urban transport from GHG emissions in Indian cities--A critical review and perspectives," Energy Policy, Elsevier, vol. 39(6), pages 3503-3514, June.
    9. Wassmer, Robert W., 2016. "Further empirical evidence on residential property taxation and the occurrence of urban sprawl," Regional Science and Urban Economics, Elsevier, vol. 61(C), pages 73-85.

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