Working Paper Series
How Differences in Property Taxes within Cities Affect Urban Sprawl?
() and Yves Zenou
Abstract: This article attempts a formal analysis of the connection
between the differentiated property tax rates within urban areas and urban
spatial pattern in U.S. cities. We first develop a duocentric-city model
where the Central Business District (CBD) is located at the origin while
the Suburban Business District (SBD) is at the other end of the city. We
show that the ratio between the property tax in the suburbs and in the
center has an ambiguous impact on the size of the city. We then test this
model empirically to determine this sign by using a dataset of effective
property tax rates we developed using GIS techniques for central cities and
suburbs in 445 urbanized areas. The empirical analysis estimates the link
between these two variables by controlling for variables such as
population, income, agricultural rent, commuting cost, climate, crime, and
employment structure. Results from the empirical analyses suggest that a
lower property tax rate in the suburbs in comparison to the central city is
associated with more expansive urban growth and greater level of
decentralization of population and employment.
Keywords: Central City; Suburbs; Urban Sprawl; Urban Decentralization; Differentiated Property Tax; (follow links to similar papers)
JEL-Codes: H30; H71; R14; (follow links to similar papers)
45 pages, June 19, 2008
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
Questions (including download problems) about the papers in this series should be directed to Elisabeth Gustafsson ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design by Joachim Ekebom