Abstract

http://ssrn.com/abstract=2435010
 


 



Efficient Classified Land Taxation


Erik B. Johnson


Quinnipiac University - Lender School of Business

Jason Pearcy


Montana State University - Bozeman - Department of Agricultural Economics and Economics

January 12, 2015


Abstract:     
While there is a rich literature on both the spatial impact of taxation and the efficient composition of differential classified taxes, there is a paucity of research on the role of spatial land competition in the choice of these taxes. This paper analyzes the efficient choice of a classified land tax under differing types of spatial competition through the use of open or closed monocentric city models with absentee landowners or pubic landownership. A key result of this analysis is that efficient classified land taxes may be distortionary with public landownership; taxes result in changes in population, resident utility, and land usage. Comparing an open and closed city with absentee landowners, differential tax rates are set in a closed city, but it is never efficient to have differential tax rates in an open city.

Number of Pages in PDF File: 44

Keywords: Efficient Taxation, Spatial Competition, Local Public Finance, Land Tax

JEL Classification: R1, R5, H21, H3

working papers series





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Date posted: May 10, 2014 ; Last revised: January 21, 2015

Suggested Citation

Johnson, Erik B. and Pearcy, Jason, Efficient Classified Land Taxation (January 12, 2015). Available at SSRN: http://ssrn.com/abstract=2435010 or http://dx.doi.org/10.2139/ssrn.2435010

Contact Information

Erik B. Johnson
Quinnipiac University - Lender School of Business ( email )
United States
Jason Pearcy (Contact Author)
Montana State University - Bozeman - Department of Agricultural Economics and Economics ( email )
Bozeman, MT 59717-2920
United States
HOME PAGE: http://www.montana.edu/jpearcy/
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