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

Sylvie Charlot, Sonia Paty and Michel Visalli

Applied Economics, 2013, vol. 45, issue 9, 1151-1166

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.

Date: 2013
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Related works:
Working Paper: 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 (2011)
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DOI: 10.1080/00036846.2011.613798

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