Abstract
A model is given for the behavior of communities and firms in regards to the granting of local firm property tax abatements in a metropolitan area. The model yields a system of simultaneous equations that are estimated using a 1977-87 panel data set from the Detroit metropolitan area. Results indicate that firm property tax abatements are offered by a community to offset noncapitalized profit-reducing characteristics. Property tax abatements are effective at increasing nonresidential property bases, but at costs (decreased home values, increased local property tax rates, and increased state subsidies to local governments) that should not be ignored by policy makers.
Sign-in/Register to access full text options 
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 callDisclaimer: 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.
