Assessing the impact of local taxation on property prices: a spatial matching contribution

Sylvie Charlot, Sonia Paty and M. Visalli

Working Papers from Grenoble Applied Economics Laboratory (GAEL)

Abstract: This article provides empirical evidence on the impact of local taxation on property prices, controlling for the local public spending, using data on property taxation and real estate transactions, over the period 1994–2004. Our empirical methodology pairs transactions in the same spatial environments. Spatial differencing and Instrumental Variables (IV) methodology allow us to compare sales across municipality boundaries and to control for the potential endogeneity of local taxation and public spending. Our results suggest that the local Property Tax (PT) rate has no impact on property prices, while the amount of taxes paid appears to have a negative effect on property price.

Keywords: FISCAL CAPITALIZATION; LOCAL TAXATION; PROPERTY PRICES; BORDERS (search for similar items in EconPapers)
JEL-codes: H30 R20 (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-geo, nep-pbe and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://gael.univ-grenoble-alpes.fr/sites/default/ ... 2011/gael2011-08.pdf (application/pdf)

Related works:
Journal Article: Assessing the impact of local taxation on property prices: a spatial matching contribution (2013)
Working Paper: ASSESSING THE IMPACT OF LOCAL TAXATION ON PROPERTY PRICES: A SPATIAL MATCHING CONTRIBUTION (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gbl:wpaper:201106

Access Statistics for this paper

More papers in Working Papers from Grenoble Applied Economics Laboratory (GAEL) Contact information at EDIRC.
Bibliographic data for series maintained by Adrien Hervouet ().