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Do Tax Increment Finance Districts Stimulate Growth in Real Estate Values?
Author(s) -
Merriman David F.,
Skidmore Mark L.,
Kashian Russ D.
Publication year - 2011
Publication title -
real estate economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.064
H-Index - 61
eISSN - 1540-6229
pISSN - 1080-8620
DOI - 10.1111/j.1540-6229.2010.00294.x
Subject(s) - real estate , property tax , property value , economics , property (philosophy) , aggregate (composite) , value (mathematics) , measure (data warehouse) , land values , residential property , aggregate data , residential real estate , finance , econometrics , public economics , economic geography , tax reform , land use , mathematics , statistics , materials science , computer science , engineering , philosophy , civil engineering , epistemology , composite material , database
We use data on all Wisconsin municipalities during the period 1990–2003 to study the effect of tax increment finance (TIF) on economic development. We use appropriate statistical techniques to measure the impact of TIF and control variables on aggregate property values. We also examine the possibility communities that use TIF are self‐selected. We find little evidence that TIF has led to significant increases in aggregate property values or that TIF increases the total value of residential and manufacturing property within a community. Surprisingly, we find positive impacts for commercial TIF districts.