Working Papers
PDF | Free | 33 pages
Download PDF

Property Tax and Urban Sprawl

Theory and Implications for U.S. Cities

Yan Song and Yves Zenou

January 2005, English

This article attempts a formal analysis of the connection between property tax and urban sprawl in U.S. cities. We develop a theoretical model that includes households (who are also landlords)and land developers in a regional land market. We then test the model empirically based on a national sample of urbanized areas. The results we obtained from both theoretical and empirical analyses indicate that increasing property tax rates reduces the size of urbanized areas.


Community Development, Economic Development, Growth Management, Property Taxation, Taxation, Urban, Urban Development, Urban Sprawl, Value-Based Taxes