IDEAS home Printed from https://ideas.repec.org/p/lii/wpaper/49.html
   My bibliography  Save this paper

Economic Development and Land Issues in Liechtenstein: Historical Dynamics, Current Challenges and Suggested Fiscal Remedies

Author

Listed:
  • Andreas Brunhart

    () (Liechtenstein-Institut)

  • Zbigniew Dumienski

    () (University of Auckland)

Abstract

Despite its miniscule size and lack of exportable natural resources, in the course of the last century Liechtenstein has become one of the wealthiest countries (per capita) in the world. The rapid growth has resulted in a very significant increase in land values throughout the Principality. However, contrary to the experience of many larger economies, the socioeconomic effects of the increasing land values in Liechtenstein have so far been relatively benign. This paper explores some of the key reasons behind the country’s economic success, highlighting in particular the advantages of Liechtenstein’s size for its foreign policy, domestic institutions and private enterprises. It also demonstrates that Liechtenstein’s geographical location, favourable agreements with neighbours, type and pace of growth, as well as various elements of legislation have all helped to mitigate the development of landrelated socioeconomic issues. There has been a growing realization that these factors might be insufficient in preventing unsustainable urban sprawl, environmental degradation, decreasing economic opportunities, worsening housing affordability and increasing inequalities. As a potential remedy to these problems, the authors suggest a reform aimed at shifting at least some of the fiscal burdens from labour and businesses to the unimproved land values that are created by public investments and community’s efforts.

Suggested Citation

  • Andreas Brunhart & Zbigniew Dumienski, 2015. "Economic Development and Land Issues in Liechtenstein: Historical Dynamics, Current Challenges and Suggested Fiscal Remedies," Arbeitspapiere 49, Liechtenstein-Institut.
  • Handle: RePEc:lii:wpaper:49
    as

    Download full text from publisher

    File URL: https://www.liechtenstein-institut.li/application/files/4315/7435/2841/LIAP_049.pdf
    File Function: First version, 2015
    Download Restriction: no

    References listed on IDEAS

    as
    1. H. William Batt, 2012. "Development and Wealth: A Georgist Perspective," American Journal of Economics and Sociology, Wiley Blackwell, vol. 71(4), pages 1004-1046, October.
    2. Louis Wasserman, 2003. "2 The Essential Henry George," American Journal of Economics and Sociology, Wiley Blackwell, vol. 62(5), pages 23-43, November.
    3. Brunhart, Andreas, 2012. "Identification of Liechtenstein's historic economic growth and business cycles by econometric extensions of data series," KOFL Working Papers 14, Konjunkturforschungsstelle Liechtenstein (KOFL), Vaduz.
    4. Sock-Yong Phang, 2000. "Hong Kong and Singapore," American Journal of Economics and Sociology, Wiley Blackwell, vol. 59(5), pages 337-352, November.
    5. Dick Netzer, 2001. "What Do We Need to Know about Land Value Taxation?," American Journal of Economics and Sociology, Wiley Blackwell, vol. 60(5), pages 97-118, November.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Land Value Tax; Spatial Economics; Economic Growth; Small-State Economics; Microstates; Liechtenstein;

    JEL classification:

    • H00 - Public Economics - - General - - - General
    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
    • N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

    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:lii:wpaper:49. 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: (Cornelia Schuster). General contact details of provider: http://edirc.repec.org/data/lieinli.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 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.