A Reply to Liu's Critique

Edward J. Mathis and Charles E. Zech

American Journal of Economics and Sociology, 1985, vol. 44, issue 3, 351-353

Abstract: Abstract. In his comment on our paper. “The Economic Effects of Land Value Taxation: An Empirical Test,” Professor Ben‐chieh Liu criticizes the structure and specification of our model and indicates the existence of data deficiencies and testing problems. Professor Liu raises some interesting questions, but he does not offer any concrete evidence to refute our original conclusion that the land value tax (LVT) is not superior to the real property tax in terms of stimulating urban development. Since the LVT represents a radical departure from current tax policy, which would lead to significant changes in the distribution of income, the burden of empirical evidence rests on those who believe that it is superior.

Date: 1985
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