This paper is concerned with how to calculate fair ground rents in perpetual ground lease arrangements and under what circumstances ground leases are motivated. These problems have been debated for some time. In general, two different kinds of models have emerged in real estate economic...

A double moral hazard approach is used to address efficiency issues associated with local property taxes. It is shown that a local property tax will not lead to an efficient solution. However, despite its inefficiencies it is shown to be in both the local government's and in the property owners'...