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• W2137748552 abstract "This paper revisits the classic argument that a system of local governments financing public service provision via property taxes will produce an efficient allocation of both housing and services if communities can implement zoning ordinances. The novel feature of the analysis is a dynamic model in which housing stocks and public policies are endogenously determined. In each period, residents choose both the zoning ordinances that govern new construction and the level of services for their communities. The paper first shows that there does not exist an equilibrium which has a steady state that is both efficient and satisfies a local stability property. It then shows numerically that, with the parameters of the model set at realistic levels, there exists an equilibrium in which communities over-zone and households are forced to over-consume housing in steady state. Welfare at this equilibrium is lower than if communities could not implement zoning. The findings of the paper challenge the well-known Benefi tV iew of the property tax." @default.
• W2137748552 created "2016-06-24" @default.
• W2137748552 creator A5056055473 @default.
• W2137748552 date "2011-06-01" @default.
• W2137748552 modified "2023-09-26" @default.
• W2137748552 title "Property Taxation, Zoning, and Efficiency: A Dynamic Analysis" @default.
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• W2137748552 doi "https://doi.org/10.3386/w17145" @default.
• W2137748552 hasPublicationYear "2011" @default.
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