IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

The taxation of capital gains on land in a growing economy

Listed author(s):
  • M Carlberg
Registered author(s):

    Firms employ land, capital, and labour to produce a homogeneous commodity which is used for consumption and investment. Government levies a tax at a flat rate and spends the proceeds on public consumption and public investment. Factor income and capital gains on land, diminished by taxation, form disposable income. Households save a fixed share of disposable income. Savings, in turn, serve to finance both private investment and capital gains on land. This gives rise to a portfolio made up of two assets: land and capital. Land income consists of land rents and capital gains, whereas capital income consists of interest payments. In equilibrium, land and capital yield the same rate of return after tax. Under the restrictive income tax (excluding capital gains), a tax increase generally raises the land price. Under the comprehensive income tax (including capital gains), a tax increase has no bearing on the land price. Under special land taxes, however, a tax increase lowers the land price.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    File Function: abstract
    Download Restriction: Fulltext access restricted to subscribers, see for details

    File URL:
    File Function: main text
    Download Restriction: Fulltext access restricted to subscribers, see for details

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Pion Ltd, London in its journal Environment and Planning C: Government and Policy.

    Volume (Year): 4 (1986)
    Issue (Month): 1 (February)
    Pages: 43-51

    in new window

    Handle: RePEc:pio:envirc:v:4:y:1986:i:1:p:43-51
    Contact details of provider: Web page:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:pio:envirc:v:4:y:1986:i:1:p:43-51. 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: (Neil Hammond)

    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.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.