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Property Taxes: Morale and Capitalization

Paper Session

Friday, Jan. 5, 2018 2:30 PM - 4:30 PM

Loews Philadelphia, Parlor 1
Hosted By: National Tax Association
  • Chair: Enda Patrick Hargaden, University of Tennessee-Knoxville

Greener on the Other Side? Spatial Discontinuities in Property Tax Rates and their Effects on Tax Morale

Michael Carlos Best
,
Stanford University
Francois Gerard
,
Columbia University
Evan Kresch
,
Oberlin College
Joana Naritomi
,
London School of Economics
Laura Zoratto
,
World Bank

Abstract

N/A

The Hated Property Tax: Salience, Tax Rates, and Tax Revolts

Marika Ilona Cabral
,
University of Texas-Austin
Caroline M. Hoxby
,
Stanford University

Abstract

N/A

Measuring Both Direct and Spillover Effects of Taxation: Evidence From a Property Tax Break for First-Time Buyers

Enda Patrick Hargaden
,
University of Tennessee-Knoxville

Abstract

This paper identifies both the direct and indirect (spillover) effects of a property
tax break made available to first-time buyers. By exempting properties below a defined
threshold from transaction taxes, Irish law generated a notch that strongly discouraged
first-time (‘targeted’) buyers from bidding above that threshold. However, this policy
created a spillover effect on non-targeted individuals, by incentivizing them to bid just
above that threshold. A theoretical analysis predicts excess mass on both sides of the
notch, delineated by tax status. The empirical strategy reveals this double-bunching,
highlighting sophisticated bidding strategies by both targeted and non-targeted groups.

Impact of Housing Tax Preferences on Home Values and Neighborhood Sorting

Hal Martin
,
Federal Reserve Bank of Cleveland

Abstract

N/A
Discussant(s)
Joel Slemrod
,
University of Michigan
William Hoyt
,
University of Kentucky
JEL Classifications
  • H2 - Taxation, Subsidies, and Revenue
  • H3 - Fiscal Policies and Behavior of Economic Agents