IDEAS home Printed from https://ideas.repec.org/a/uwp/landec/v94y2018i4p475-495.html
   My bibliography  Save this article

An Experimental Economics Investigation of the Land Value Tax: Efficiency, Acceptability, and Positional Goods

Author

Listed:
  • Joshua M. Duke
  • TianHang Gao

Abstract

This research offers the first economic experiment investigating the land tax, where landowners invest under different property tax regimes. A voting treatment assesses the relative acceptability of land value taxation. Results show a land tax produced greater overall welfare in only 37.5% of the experiment sessions. Systematic overinvestment arises from the positional-good characteristic of residential land investment, but this effect vanishes when the positional-good indicator is removed. The experiments show that the participants unexpectedly voted in favor of the land tax, suggesting that the efficiency and acceptability of the land tax may be more complex than in nonbehavioral economics modeling.

Suggested Citation

  • Joshua M. Duke & TianHang Gao, 2018. "An Experimental Economics Investigation of the Land Value Tax: Efficiency, Acceptability, and Positional Goods," Land Economics, University of Wisconsin Press, vol. 94(4), pages 475-495.
  • Handle: RePEc:uwp:landec:v:94:y:2018:i:4:p:475-495
    Note: DOI: 10.3368/le.94.4.475
    as

    Download full text from publisher

    File URL: http://le.uwpress.org/cgi/reprint/94/4/475
    Download Restriction: A subscripton is required to access pdf files. Pay per article is available.

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    More about this item

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uwp:landec:v:94:y:2018:i:4:p:475-495. 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: (). General contact details of provider: http://le.uwpress.org/ .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.