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Public Goods and the Derivation of Land Value Assessment Schedules within a Spatial Equilibrium Setting
Author(s) -
Thrall Grant Ian
Publication year - 1979
Publication title -
geographical analysis
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 65
eISSN - 1538-4632
pISSN - 0016-7363
DOI - 10.1111/j.1538-4632.1979.tb00670.x
Subject(s) - public good , economics , land value , schedule , value (mathematics) , microeconomics , public sector , government (linguistics) , tiebout model , realm , public economics , public land , natural resource economics , economy , geography , mathematics , statistics , law , philosophy , management , archaeology , political science , linguistics
A method of mapping the classic economic public good into a spatial realm is identified. Within the spatial equilibrium land use model an ideal government distributes a public good; sets mill rates, assesses land, and collects property taxes; and maintains a balanced budget. Equilibrium is brought about within the household sector by the unfolding of the land value schedule both over space and in response to the public sector. The household and public sectors are mutually within a steady state when there is no excess demand or supply of public good. The model is extended to elucidate Tiebout's hypothesis that government activity is reflected in land values. Also, a criterion for judging fairness of the spatial equilibrium assessment schedule is presented and applied.