IDEAS home Printed from https://ideas.repec.org/a/sae/pubfin/v24y1996i1p120-128.html
   My bibliography  Save this article

Excess Burden of the Property Tax: the Open Jurisdiction Case

Author

Listed:
  • A.F.Aisha Ghaus

    (Social Policy and Development Centre, Karachi, Pakistan)

  • Hafiz A. Pasha

    (Institute of Business Administration, Karachi, Pakistan)

Abstract

This article derives the general expression for the excess burden of the property tax in an open jurisdiction. The resulting expression corresponds to the loss of revenues resulting from the decline in structures and from contraction of city size. Also, it appears that if the land is municipally owned then there is no case for the imposition of the property tax. Simulations reveal that the marginal excess burden to revenue ratio rises exponentially and is sensitive to parameters like income level, nature of housing preferences, technology, and so on.

Suggested Citation

  • A.F.Aisha Ghaus & Hafiz A. Pasha, 1996. "Excess Burden of the Property Tax: the Open Jurisdiction Case," Public Finance Review, , vol. 24(1), pages 120-128, January.
    • Handle: RePEc:sae:pubfin:v:24:y:1996:i:1:p:120-128
    DOI: 10.1177/109114219602400108
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/109114219602400108
    Download Restriction: no
    File URL: https://libkey.io/10.1177/109114219602400108?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. Arnott, Richard J. & MacKinnon, James G., 1977. "The effects of the property tax: A general equilibrium simulation," Journal of Urban Economics, Elsevier, vol. 4(4), pages 389-407, October.
    2. Wheaton, William C., 1974. "A comparative static analysis of urban spatial structure," Journal of Economic Theory, Elsevier, vol. 9(2), pages 223-237, October.
    Full references (including those not matched with items on IDEAS)

    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. Larson, William & Yezer, Anthony, 2015. "The energy implications of city size and density," Journal of Urban Economics, Elsevier, vol. 90(C), pages 35-49.
    2. Hafiz A. Pasha, 1990. "The Differential Incidence of a Land Tax," Urban Studies, Urban Studies Journal Limited, vol. 27(4), pages 591-595, August.
    3. Yan Song & Yves Zenou, 2009. "How Do Differences In Property Taxes Within Cities Affect Urban Sprawl?," Journal of Regional Science, Wiley Blackwell, vol. 49(5), pages 801-831, December.
    4. Haiwen Zhou, 2013. "The Choice of Technology and Rural-Urban Migration in Economic Development," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 8(3), pages 337-361, September.
    5. Lu Han & William C. Strange, 2014. "Bidding Wars for Houses," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 42(1), pages 1-32, March.
    6. Arnaud Mertens & Philippe Van Kerm, 2023. "Commuting time and absenteeism: Evidence from a natural experiment," LISER Working Paper Series 2023-08, Luxembourg Institute of Socio-Economic Research (LISER).
    7. Brueckner, Jan K., 2005. "Transport subsidies, system choice, and urban sprawl," Regional Science and Urban Economics, Elsevier, vol. 35(6), pages 715-733, November.
    8. Long, Fenjie & Zheng, Longfei & Song, Zhida, 2018. "High-speed rail and urban expansion: An empirical study using a time series of nighttime light satellite data in China," Journal of Transport Geography, Elsevier, vol. 72(C), pages 106-118.
    9. Bertaud, Alain & Brueckner, Jan K., 2005. "Analyzing building-height restrictions: predicted impacts and welfare costs," Regional Science and Urban Economics, Elsevier, vol. 35(2), pages 109-125, March.
    10. Anas, Alex & Chang, Huibin, 2023. "Productivity benefits of urban transportation megaprojects: A general equilibrium analysis of «Grand Paris Express»," Transportation Research Part B: Methodological, Elsevier, vol. 174(C).
    11. Ismir Mulalic & Jos N. Van Ommeren & Ninette Pilegaard, 2014. "Wages and Commuting: Quasi‐natural Experiments' Evidence from Firms that Relocate," Economic Journal, Royal Economic Society, vol. 124(579), pages 1086-1105, September.
    12. Borghorst, Malte & Mulalic, Ismir & van Ommeren, Jos, 2024. "Commuting, gender and children," Journal of Urban Economics, Elsevier, vol. 144(C).
    13. Jeon, Jae Sik, 2019. "How housing market responds to greenbelt relaxation: Case of Seoul Metropolitan Area, South Korea," Land Use Policy, Elsevier, vol. 84(C), pages 328-334.
    14. B.G. Dahlby, 1982. "Traditional View of the Incidence of the Property Tax: an Examination," Public Finance Review, , vol. 10(3), pages 369-383, July.
    15. Haughwout, Andrew F. & Inman, Robert P., 2001. "Fiscal policies in open cities with firms and households," Regional Science and Urban Economics, Elsevier, vol. 31(2-3), pages 147-180, April.
    16. Sato, Yasuhiro & Xiao, Wei, 2015. "Land development, search frictions and city structure," Regional Science and Urban Economics, Elsevier, vol. 50(C), pages 63-76.
    17. Theis Theisen, 2011. "Household size and city structure," ERES eres2011_231, European Real Estate Society (ERES).
    18. Gusdorf, Francois & Hallegatte, Stephane, 2007. "Behaviors and housing inertia are key factors in determining the consequences of a shock in transportation costs," Energy Policy, Elsevier, vol. 35(6), pages 3483-3495, June.
    19. Joseph S. DeSalvo & Qing Su, 2017. "Determinants of Urban Sprawl: A Panel Data Approach," International Journal of Regional Development, Macrothink Institute, vol. 4(2), pages 1-25, December.
    20. Garcia-López, Miquel-Àngel, 2012. "Urban spatial structure, suburbanization and transportation in Barcelona," Journal of Urban Economics, Elsevier, vol. 72(2), pages 176-190.

    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:sae:pubfin:v:24:y:1996:i:1:p:120-128. 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: SAGE Publications (email available below). General contact details of provider: .

    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.