Start Page: 109
End Page:128
Volume:8
Issue Number: 02
Year: 2000
Publication: Journal of Real Estate Literature

   
Abstract:  This article examines the theoretical and empirical economic literature of the effects of property taxes on the price of residential housing. The results in the theoretical literature are largely driven by the various modeling assumptions. Therefore, the effect must be measured empirically. Unfortunately, the empirical work has yielded contradictory results. It is unclear if the empirical differences in recent studies are the result of methodological differences or if other factors are at work. The empirical work needs to incorporate additional variables that may be influencing the capitalization effect in an attempt to identify the other factors that may be at work.