Discussion Paper Details

Please find the details for DP5345 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Property Tax and Urban Sprawl. Theory and Implications for U.S. Cities

Author(s): Yan Song and Yves Zenou

Publication Date: November 2005

Keyword(s): fully-closed city, instrumental variables, property tax, urban economics and urban sprawl

Programme Area(s): Public Economics

Abstract: This article attempts a formal analysis of the connection between property tax and urban sprawl in U.S. cities. We develop a theoretical model that includes households (who are also landlords) and land developers in a regional land market. We then test the model empirically based on a national sample of urbanized areas. The results we obtained from both theoretical and empirical analyses indicate that increasing property tax rates reduces the size of urbanized areas.

For full details and related downloads, please visit:

Bibliographic Reference

Song, Y and Zenou, Y. 2005. 'Property Tax and Urban Sprawl. Theory and Implications for U.S. Cities'. London, Centre for Economic Policy Research.