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Land taxes in a Latin American context


  • Juliano Junqueira Assunção

    () (Department of Economics PUC-Rio)

  • Humberto Moreira



Since Henry George (1839-1897) economists have been arguing that a tax on unim- proved land is an ideal tax on e¢ ciency grounds. Output taxes, on the other hand, have distortional e¤ects on the economy. This paper shows that under asymmetric information output tax might be used along with land tax in order to implement the optimal taxation scheme in a Latin-American context, i.e., in an economy with imperfect land-rental market, non-agricultural land use and non-revenue objectives of land taxation. Also, we show that: (i) schemes based on land taxes alone might not be implementable; and (ii) tax evasion is more acute among large landholders.

Suggested Citation

  • Juliano Junqueira Assunção & Humberto Moreira, 2005. "Land taxes in a Latin American context," Textos para discussão 497, Department of Economics PUC-Rio (Brazil).
  • Handle: RePEc:rio:texdis:497

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    References listed on IDEAS

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    Cited by:

    1. Monteiro, Paulo Klinger, 2006. "The set of equilibria of first-price auctions," Journal of Mathematical Economics, Elsevier, vol. 42(3), pages 364-372, June.
    2. Monteiro, Paulo Klinger, 2009. "First-price auction symmetric equilibria with a general distribution," Games and Economic Behavior, Elsevier, vol. 65(1), pages 256-269, January.
    3. Flôres Junior, Renato Galvão, 2004. "On the use (fulness) of CGE modelling in trade negotiations and policy," FGV/EPGE Economics Working Papers (Ensaios Economicos da EPGE) 564, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
    4. Cavalcanti Ferreira, Pedro & Facchini, Giovanni, 2005. "Trade liberalization and industrial concentration: Evidence from Brazil," The Quarterly Review of Economics and Finance, Elsevier, vol. 45(2-3), pages 432-446, May.
    5. Xiao, Zhijie & Lima, Luiz Renato Regis de Oliveira, 2004. "Purchasing power parity and the unit root tests: a robust analysis," FGV/EPGE Economics Working Papers (Ensaios Economicos da EPGE) 552, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
    6. Juanita Villaveces, 2014. "Is [Rural] Property Tax Relevant?," DOCUMENTOS DE TRABAJO 011527, UNIVERSIDAD DEL ROSARIO.

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    Optimal taxation; tax evasion; land use.;

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