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Land Value Capitalization in Local Public Finance

David A. Starrett

Journal of Political Economy 1981

We explore the conditions under which the welfare benefits of local public goods projects will be capitalized into land values. We find two types of sufficient conditions, one involving similar communities and the other involving differentiated communities. The form of capitalization differs between these cases, and we explore the nature of these differences. We also examine intermediate cases and identify models in which there will be no capitalization.

DOI
10.1086/260967
Volume
89 (2)
Pages
306-327
Language
en
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