Impact of Local Public Services and Taxes on Dwelling Choice within a Single Taxing Jurisdiction: A Discrete Choice Model
Discrete 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 McFaddenâ€™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.
Volume (Year): 27 (2005)
Issue (Month): 4 ()
|Contact details of provider:|| Postal: |
Web page: http://www.aresnet.org/
|Order Information:|| Postal: Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323|
Web: http://pages.jh.edu/jrer/about/get.htm Email:
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.:
- 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.
- 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.
- Daniel McFadden, 1977. "Modelling the Choice of Residential Location," Cowles Foundation Discussion Papers 477, Cowles Foundation for Research in Economics, Yale University.
- 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.
- 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.
- 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.
- 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.
- Patrick Bayer & Robert McMillan & Kim Rueben, 2004.
"Residential Segregation in General Equilibrium,"
885, Economic Growth Center, Yale University.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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..
When requesting a correction, please mention this item's handle: RePEc:jre:issued:v:27:n:3:2005:p:427-444. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (JRER Graduate Assistant/Webmaster)
If references are entirely missing, you can add them using this form.