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The Land Tax Is Pretty Neutral

N. Edward Coulson and Herman Li

Septiembre 2008, inglés


The inelastic supply of land suggests that taxation of land might be neutral. Feldstein (1977) suggests otherwise, in that taxation reduces risk, and this may raise demand among risk-averse lenders. We simulate the effect of this demand increase and find that it has minimal impact. The land tax is not neutral, but neither is the impact of risk reduction on the price of land particularly large on average.


Keywords

tributación del valor del suelo, tributación