Abstract

Caplan (2001) shows that because land is asource of immobile wealth, localgovernments can use the property tax toavoid competitive pressures of the Tieboutmodel, allowing them to deviate fromcitizens' preferences. In this comment Ishow that the property tax is not the onlytax local governments can use to avoidcompetitive pressure. Most taxes placed onproperty owners allow local governments toextract some rents despite perfect citizenmobility.

Full Text
Paper version not known

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.