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Assessing The Impact Of Local Taxation On Property Prices: A Spatial Matching Contribution

Author

Listed:
  • Sylvie Charlot

    (GAEL - Laboratoire d'Economie Appliquée = Grenoble Applied Economics Laboratory - UPMF - Université Pierre Mendès France - Grenoble 2 - INRA - Institut National de la Recherche Agronomique)

  • Sonia Paty

    (EQUIPPE - Economie Quantitative, Intégration, Politiques Publiques et Econométrie - Université de Lille, Sciences et Technologies - Université de Lille, Sciences Humaines et Sociales - PRES Université Lille Nord de France - Université de Lille, Droit et Santé, GATE - Groupe d'analyse et de théorie économique - UL2 - Université Lumière - Lyon 2 - ENS LSH - Ecole Normale Supérieure Lettres et Sciences Humaines - CNRS - Centre National de la Recherche Scientifique)

  • Michel Visalli

    (CSGA - Centre des Sciences du Goût et de l'Alimentation [Dijon] - INRA - Institut National de la Recherche Agronomique - UB - Université de Bourgogne - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper provides empirical evidence on the impact of local taxation on property prices, controlling for the local public spending, using data on property taxation and real estate transactions, over the period 1994-2004. Our empirical methodology pairs transactions in the same spatial environments. Spatial differencing and Instrumental Variables methodology allow us to compare sales across municipality boundaries and to control for the potential endogeneity of local taxation and public spending. Our results suggest that the local property tax rate has no impact on property prices, while the amount of taxes paid appears to have a negative effect on property price.

Suggested Citation

  • Sylvie Charlot & Sonia Paty & Michel Visalli, 2013. "Assessing The Impact Of Local Taxation On Property Prices: A Spatial Matching Contribution," Post-Print hal-00762809, HAL.
    • Handle: RePEc:hal:journl:hal-00762809
    DOI: 10.1080/00036846.2011.613798
    Note: View the original document on HAL open archive server: https://hal.science/hal-00762809
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    References listed on IDEAS

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    1. Olivier Chanel & Laurence Delattre & Claude Napoléone, 2014. "Determinants of Local Public Policies for Farmland Preservation and Urban Expansion: A French Illustration," Land Economics, University of Wisconsin Press, vol. 90(3), pages 411-433.
    2. Edward Feser, 2013. "Isserman’s Impact," International Regional Science Review, , vol. 36(1), pages 44-68, January.

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    Keywords

    Social Sciences & Humanities;

    JEL classification:

    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General

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