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The effect of risk on the effect of a land tax: A simulation

The inelastic supply of land suggests that taxation of land might be neutral. Feldstein (1977) suggests otherwise, in that taxation reduces risk, and this may raise demand among risk-averse lenders. We simulate the effect of this demand increase and find that the impact in the aggregate is neutral, because many households are risk-loving in housing assets. The effects on individuals are less negligible.
Year of publication:
2010
Authors: Coulson, N. Edward ; Li, Herman
Published in:
Regional Science and Urban Economics. - Elsevier, ISSN 0166-0462. - Vol. 40.2010, 6, p. 530-537
Publisher: Elsevier
Subject: Land tax Tax neutrality
Type of publication: Article
Source:
Persistent link: https://www.econbiz.de/10008872434
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