Abstract
Over the past twelve years considerable evidence has accumulated on the extent to which intercommunity differences in property tax burdens are capitalized into property values [17; 21; 8; 7; 25]. Recently, Linneman [14] has analyzed the validity of this evidence after taking into consideration alternative models of local government finance. In the model that he believes best represents the spirit of the tax capitalization literature, local government expenditures are financed wholly by property tax receipts. He demonstrates that in this case a perfect correlation between taxes and public goods makes it econometrically impossible to estimate property value equations unless measurement errors and omitted variables are present. He therefore asserts that existing results on the tax capitalization issue are of nebulous value.
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.
