Quasi-Experimental Evidence on the Connection between Property Taxes and Residential Capital Investment

• 成果类型: Article
• 署名作者: Lutz, Byron
• 署名单位: Federal Reserve System - USA
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.20120017
• 发表日期: 2015
• 页码: 300-330
• 关键词: schools; LAND; valuation; taxation; GROWTH; VALUES; MARKET; matter

摘要

Do low property taxes attract new home construction? This question is answered using a large shock to property tax burdens caused by an unusual school finance reform in the state of New Hampshire. The estimates suggest that, in most of the state, communities with a reduced tax burden experience a substantial increase in residential construction. In the area of the state near the region's primary urban center (Boston), however, the shock clears through a price adjustment-i.e., by capitalizing into property values. The differing responses are attributed to differing housing supply elasticities.