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THE EFFECT OF PROPERTY TAX RATE DIFFERENTIALS ON SINGLE‐FAMILY HOUSING STARTS IN WISCONSIN, 1978–1989 *
Author(s) -
McGibany James M.
Publication year - 1991
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/j.1467-9787.1991.tb00152.x
Subject(s) - property tax , excise , economics , residential property , property (philosophy) , tax rate , demographic economics , econometrics , public economics , tax reform , monetary economics , macroeconomics , economic geography , philosophy , epistemology
. A pooled cross‐section time‐series approach is used to test the hypothesis that differences in property tax rates between and across regions exert an excise‐tax impact on housing starts. Synthesizing the research regarding property tax incidence on housing markets and residential location with that of regional housing studies, an empirical model that allows for inter‐ and intraregional influences on housing starts is developed. Using county data from Wisconsin over a twelve‐year span, I find that property tax rate differentials have a negative effect on the construction of single‐family houses.