Property taxes and dynamic inefficiency: A correction of a “correction”

C-Tier
Journal: Economics Letters
Year: 2020
Volume: 197
Issue: C

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

According to Homburg’s (2014) comment on Kim and Lee (1997), a property tax cannot cause dynamic inefficiency in overlapping-generations models with land unless the tax ”confiscates” the entire land rent. But then, Homburg claims, land would be intrinsically worthless and the market for land would be closed. The latter claim is invalid because, as a store of value, land can trade at a positive price even though its net return is negative.

Technical Details

RePEc Handle
repec:eee:ecolet:v:197:y:2020:i:c:s0165176520303633
Journal Field
General
Author Count
1
Added to Database
2026-01-25