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HOW DO DIFFERENCES IN PROPERTY TAXES WITHIN CITIES AFFECT URBAN SPRAWL? *
Author(s) -
Song Yan,
Zenou Yves
Publication year - 2009
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.1467-9787.2009.00616.x
Subject(s) - urban sprawl , expansive , property tax , central city , decentralization , affect (linguistics) , population , economic geography , economics , geography , public economics , urban planning , demography , tax reform , market economy , ecology , linguistics , philosophy , compressive strength , materials science , sociology , composite material , biology
We develop a duocentric‐city model and 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 test this model by using a dataset of effective property tax rates which we developed using GIS techniques for central cities and suburbs in 445 urbanized areas. Results from the empirical analyses suggest that a lower property tax rate in the suburbs as compared to the central city is associated with more expansive urban growth and a greater level of decentralization of population and employment.