Economic Effects of Taxes on Land

Steven Bourassa

American Journal of Economics and Sociology, 1992, vol. 51, issue 1, 109-113

Abstract: Abstract. Land taxes may not be neutral in their economic impacts due to liquidity effects. Liquidity effects of land taxes may be in the form of holding cost effects or capitalization effects. Holding cost effects may occur when land is being withheld from development for non‐financial reasons, such as the direct benefits of landownership. Capitalization effects may occur when there are imperfections in capital markets which prevent the acquisition of land for otherwise viable projects. Contrary to the analysis by Bentick, no liquidity effects should be expected due to variations in streams of land rent generated by different hypothetical development projects for a given site. Bentick's analysis relies on a misunderstanding of the nature of land rent.

Date: 1992
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://doi.org/10.1111/j.1536-7150.1992.tb02516.x

Related works:
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:bla:ajecsc:v:51:y:1992:i:1:p:109-113

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0002-9246

Access Statistics for this article

American Journal of Economics and Sociology is currently edited by Laurence S. Moss

More articles in American Journal of Economics and Sociology from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().