IDEAS home Printed from https://ideas.repec.org/a/bla/ajecsc/v51y1992i1p109-113.html
   My bibliography  Save this article

Economic Effects of Taxes on Land:

Author

Listed:
  • Steven C. Bourassa

Abstract

. Land taxes may not be neutral in their economic impacts due to liquidity effects. Liquidity effects of land taxes may be in the form of holding cost effects or capitalization effects. Holding cost effects may occur when land is being withheld from development for non‐financial reasons, such as the direct benefits of landownership. Capitalization effects may occur when there are imperfections in capital markets which prevent the acquisition of land for otherwise viable projects. Contrary to the analysis by Bentick, no liquidity effects should be expected due to variations in streams of land rent generated by different hypothetical development projects for a given site. Bentick's analysis relies on a misunderstanding of the nature of land rent.

Suggested Citation

  • Steven C. Bourassa, 1992. "Economic Effects of Taxes on Land:," American Journal of Economics and Sociology, Wiley Blackwell, vol. 51(1), pages 109-113, January.
    • Handle: RePEc:bla:ajecsc:v:51:y:1992:i:1:p:109-113
    DOI: 10.1111/j.1536-7150.1992.tb02516.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1536-7150.1992.tb02516.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1536-7150.1992.tb02516.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. 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 349-360, April.
    2. 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 859-868, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Robert Andrew Peters, 2006. "Lessons for Economic Reform Based on Pennsylvania’s Experiences with the Two‐Tiered Property Tax," American Journal of Economics and Sociology, Wiley Blackwell, vol. 65(3), pages 701-731, July.
    2. Steven C. Bourassa, 1993. "The Rent Gap Debunked," Urban Studies, Urban Studies Journal Limited, vol. 30(10), pages 1731-1744, December.
    3. Gary Owen Garner, 2012. "The significance of financial barriers caused by holding costs in greenfield residential development," ERES eres2012_003, European Real Estate Society (ERES).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Petrucci, Alberto, 2006. "The incidence of a tax on pure rent in a small open economy," Journal of Public Economics, Elsevier, vol. 90(4-5), pages 921-933, May.
    2. Wallace E. Oates & Robert M. Schwab & Wallace E. Oates & Robert M. Schwab, 2004. "The Impact of Urban Land Taxation: The Pittsburgh Experience," Chapters, in: Environmental Policy and Fiscal Federalism, chapter 16, pages 273-293, Edward Elgar Publishing.
    3. Kangoh Lee, 2003. "Should land and capital be taxed at a uniform rate?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 36(2), pages 350-372, May.
    4. Kangoh Lee, 2019. "Absentee ownership, land taxation and surcharge," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 62(1), pages 47-68, February.
    5. Micheal L. Collins & Adam Larragy, 2011. "A Site Value Tax for Ireland: Approach, Design and Implementation," Trinity Economics Papers tep1911, Trinity College Dublin, Department of Economics.
    6. Stefan Homburg, 2014. "Overaccumulation, Public Debt and the Importance of Land," German Economic Review, Verein für Socialpolitik, vol. 15(4), pages 411-435, November.
    7. Hatfield, John William, 2010. "Ricardian equivalence for local government bonds: A utility maximization approach," Economics Letters, Elsevier, vol. 107(2), pages 148-151, May.
    8. Murray, Cameron, 2020. "A housing supply absorption rate equation," OSF Preprints 7n8rj, Center for Open Science.
    9. Richard Arnott & Petia Petrova, 2006. "The Property Tax as a Tax on Value: Deadweight Loss," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 13(2), pages 241-266, May.
    10. Fuss, Sabine & Chen, Claudine & Jakob, Michael & Marxen, Annika & Rao, Narasimha D. & Edenhofer, Ottmar, 2016. "Could resource rents finance universal access to infrastructure? A first exploration of needs and rents," Environment and Development Economics, Cambridge University Press, vol. 21(6), pages 691-712, December.
    11. Magnus Henrekson & Tino Sanandaji, 2011. "Entrepreneurship and the theory of taxation," Small Business Economics, Springer, vol. 37(2), pages 167-185, September.
    12. Jonathan Eaton, 1987. "A Dynamic Specific-Factors Model of International Trade," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 54(2), pages 325-338.
    13. Kotlikoff, Laurence J., 2002. "Generational policy," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 4, chapter 27, pages 1873-1932, Elsevier.
    14. Gregor Schwerhoff & Ottmar Edenhofer & Marc Fleurbaey, 2020. "Taxation Of Economic Rents," Journal of Economic Surveys, Wiley Blackwell, vol. 34(2), pages 398-423, April.
    15. Mark A Roberts, 2013. "Fiscal rules and the maximum sustainable size of the public debt in the Diamond overlapping generations model," Discussion Papers 2013/07, University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM).
    16. Kim, Kyung-Soo & Lee, Jaewoo, 1997. "Reexamination of dynamic efficiency with taxation on land," Economics Letters, Elsevier, vol. 57(2), pages 169-175, December.
    17. Fullerton, Don & Metcalf, Gilbert E., 2002. "Tax incidence," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 4, chapter 26, pages 1787-1872, Elsevier.
    18. Laurence J. Kotlikoff, 1998. "The A-K Model: It's Past, Present, and Future," NBER Working Papers 6684, National Bureau of Economic Research, Inc.
    19. Dao, Nguyen Thang & Edenhofer, Ottmar, 2018. "Feldstein meets George: Land rent taxation and socially optimal allocation in economies with environmental externality," Resource and Energy Economics, Elsevier, vol. 53(C), pages 20-41.
    20. John Deskins & William Fox, 2008. "Measuring Behavioral Responses to the Property Tax," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0816, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.

    More about this item

    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:bla:ajecsc:v:51:y:1992:i:1:p:109-113. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0002-9246 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.