On the Capitalization Hypothesis for Local Public Finance

David A Starrett

The Warwick Economics Research Paper Series (TWERPS) from University of Warwick, Department of Economics

Abstract: The idea that the value of local public goods projects will be capitalized into land rents has a long tradition in the public finance literature, dating back at least as far as Tiebout (1956). Empirical evidence has been mixed, but some positive results have been reported by Oates (1969) among others. This simple idea is potentially very powerful. It provides a simple measure of project benefits which reveals (if perhaps after the fact) individual preferences for public goods. And if rent changes can be predicted in advance, it may provide an objective function for community decision making.

Pages: 49 pages
Date: 1978
References: Add references at CitEc
Citations:

Downloads: (external link)
https://warwick.ac.uk/fac/soc/economics/research/w ... 78-1988/twerp134.pdf

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:wrk:warwec:134

Access Statistics for this paper

More papers in The Warwick Economics Research Paper Series (TWERPS) from University of Warwick, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Margaret Nash ().