A Property Taxation Mechanism with Self-Assessment

9 Pages Posted: 19 May 2009

See all articles by Dieter Gstach

Dieter Gstach

Vienna University of Economics and Business - Department of Economics

Abstract

This paper analyzes a variant of the classic idea for property taxation based on owner's self-assessment. To induce reporting of market values tax authorities announce to purchase some of the properties randomly at declared values under certain conditions. These conditions are based on properties of the distribution of declared values. It is proven that a unique Nash equilibrium of this taxation game among tax payers exists in which all of them report market values and tax authorities do not purchase any property.

Suggested Citation

Gstach, Dieter, A Property Taxation Mechanism with Self-Assessment. Metroeconomica, Vol. 60, Issue 3, pp. 400-408, July 2009. Available at SSRN: https://ssrn.com/abstract=1405527 or http://dx.doi.org/10.1111/j.1467-999X.2008.00351.x

Dieter Gstach (Contact Author)

Vienna University of Economics and Business - Department of Economics ( email )

Augasse 2-6
A-1090 Wien
Austria

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