Impact of Local Public Services and Taxes on Dwelling Choice within a Single Taxing Jurisdiction: A Discrete Choice Model

Bulent Uyar () and Kenneth H. Brown ()
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Bulent Uyar: Economics Department College of Business Administration University of Northern Iowa Cedar Falls, IA 50614-0129
Kenneth H. Brown: Economics Department College of Business Administration University of Northern Iowa Cedar Falls, IA 50614-0129

Journal of Real Estate Research, 2005, vol. 27, issue 4, pages 427-444

Abstract: Discrete choice models of household location assume local public finance variables remain the same within a given taxing jurisdiction. Thus far, no such model has tested the validity of this assumption. This study employs McFadden’s (1978, 2001) discrete choice model to test for the significance of dwelling specific local taxes and public services on household location decisions within a single taxing jurisdiction. The findings indicate that such variables are significant determinants of location decisions even within a single taxing jurisdiction, and should not be assumed away. Failure to include such variables in a model may, therefore, result in biased statistical results.

JEL-codes: L85 (search for similar items in EconPapers)
Date: 2005
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