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A Computable General Equilibrium Analysis of a Property Tax Limitation Initiative in Idaho

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  • Roxana Julia-Wise
  • Stephen C. Cooke
  • RDavid Holland

Abstract

Idaho voters rejected a property tax limitation initiative in 1996. Before the election, proponents claimed the decrease in revenues would be offset from the increase in economic activity. We developed a computable general equilibrium model based on tradable and non-tradable sectors to hypothesize the impact on Idaho’s public finances, household income, and economic growth, with and without the initiative’s tax policy. The model predicts that each $3 reduction in property tax revenues would result in an overall $2 loss in state and local revenues. The benefits are predicted to be $35 per low-income household and $738 per high-income household. The federal government would receive 1% additional revenues from Idaho.

Suggested Citation

  • Roxana Julia-Wise & Stephen C. Cooke & RDavid Holland, 2002. "A Computable General Equilibrium Analysis of a Property Tax Limitation Initiative in Idaho," Land Economics, University of Wisconsin Press, vol. 78(2), pages 207-227.
    • Handle: RePEc:uwp:landec:v:78:y:2002:i:2:p:207-227
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    2. Mardones D., Cristián, 2012. "Chile: building a computable general equilibrium model with an application to the Bío Bío region," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
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    10. Nalitra Thaiprasert & Dagney Faulk & Michael J. Hicks, 2013. "A Regional Computable General Equilibrium Analysis of Property Tax Rate Caps and a Sales Tax Rate Increase in Indiana," Public Finance Review, , vol. 41(4), pages 446-472, July.
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    More about this item

    JEL classification:

    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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