The Incidence of a Tax on Pure Rent in a Small Open Economy
This paper analyzes the effects of a land rent tax on capital formation and foreign investment in a life-cycle small open economy with endogenous labor-leisure choices. The consequences of land taxation critically depend on how the tax proceeds are used by the government. A land tax depresses capital formation, crowds out foreign investment and increases national wealth and consumption when the land tax revenues are distributed as lump-sum payments. If the proceeds from land taxation are used to finance unproductive government expenditure, the land tax will be neutral in its effects on the capital stock, nonhuman wealth and labor. When the tax revenues are used to reduce labor taxes, the land rent tax spurs nonhuman wealth accumulation and ambiguously affects the capital stock and labor.
|Date of creation:||12 Jul 2005|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.unimol.it
More information through EDIRC
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.:
- Mills, David E., 2001. "Land value taxation," Regional Science and Urban Economics, Elsevier, vol. 31(6), pages 765-770, November.
- Laurence J. Kotlikoff & Lawrence H. Summers, 1986.
NBER Working Papers
1864, National Bureau of Economic Research, Inc.
- Ihori, Toshihiro, 1990. "Economic effects of land taxes in an inflationary economy," Journal of Public Economics, Elsevier, vol. 42(2), pages 195-211, July.
- Jonathan Eaton, 1984.
NBER Working Papers
1512, National Bureau of Economic Research, Inc.
- Buiter, Willem H., 1989.
"Debt neutrality, Professor Vickrey and Henry George's 'single tax',"
Elsevier, vol. 29(1), pages 43-47.
- Willem H. Buiter, 1988. "Debt Neutrality, Professor Vickrey and Henry George's "Single Tax"," NBER Working Papers 2673, National Bureau of Economic Research, Inc.
- Chamley, Christophe & Wright, Brian D., 1987. "Fiscal incidence in an overlapping generations model with a fixed asset," Journal of Public Economics, Elsevier, vol. 32(1), pages 3-24, February.
- Olivier J. Blanchard, 1984.
"Debt, Deficits and Finite Horizons,"
NBER Working Papers
1389, National Bureau of Economic Research, Inc.
- Fane, George, 1984. "The Incidence of a Tax on Pure Rent: The Old Reason for the Old Answer," Journal of Political Economy, University of Chicago Press, vol. 92(2), pages 329-33, April.
- Bentick, Brian L, 1979. "The Impact of Taxation and Valuation Practices on the Timing and Efficiency of Land Use," Journal of Political Economy, University of Chicago Press, vol. 87(4), pages 859-68, August.
- Feldstein, Martin S, 1977. "The Surprising Incidence of a Tax on Pure Rent: A New Answer to an Old Question," Journal of Political Economy, University of Chicago Press, vol. 85(2), pages 349-60, April.
- Calvo, Guillermo A & Kotlikoff, Laurence J & Rodriguez, Carlos Alfredo, 1979.
"The Incidence of a Tax on Pure Rent: A New (?) Reason for an Old Answer,"
Journal of Political Economy,
University of Chicago Press, vol. 87(4), pages 869-74, August.
- Guillermo A. Galvo & Laurence J. Kotlikoff & Carlos Alfredo Rodriguez, 1978. "The Incidence of a Tax on Pure Rent: A New Reason for an Old Answer," UCLA Economics Working Papers 125, UCLA Department of Economics.
- Kangoh Lee, 2003. "Should land and capital be taxed at a uniform rate?," Canadian Journal of Economics, Canadian Economics Association, vol. 36(2), pages 350-372, May.
- Hiroyuki Hashimoto & Masaya Sakuragawa, 1998. "Land-Tax, Transfer and Growth in an Endogenously Growing Economy with Overlapping Generations," The Japanese Economic Review, Japanese Economic Association, vol. 49(4), pages 412-425, December.
When requesting a correction, please mention this item's handle: RePEc:mol:ecsdps:esdp05025. 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: (Claudio Lupi)
If references are entirely missing, you can add them using this form.