Impact of Local Public Services and Taxes on Dwelling Choice within a Single Taxing Jurisdiction: A Discrete Choice Model

18 Pages Posted: 27 Dec 2006

See all articles by Bulent Uyar

Bulent Uyar

University of Northern Iowa

Kenneth H. Brown

University of Northern Iowa - College of Business Administration - Department of Economics

Abstract

Discrete choice models of household location assume local public finance variables remain the same within a given taxing jurisdiction. Thus far, no such model has tested the validity of this assumption. This study employs McFadden's (1978, 2001) discrete choice model to test for the significance of dwelling-specific local taxes and public services on household location decisions within a single taxing jurisdiction. The findings indicate that such variables are significant determinants of location decisions even within a single taxing jurisdiction, and should not be assumed away. Failure to include such variables in a model may, therefore, result in biased statistical results.

Keywords: household location, public finance, local taxes, public services

JEL Classification: C12, C15, C35, C51, C52, D12, D13

Suggested Citation

Uyar, Bulent and Brown, Kenneth H., Impact of Local Public Services and Taxes on Dwelling Choice within a Single Taxing Jurisdiction: A Discrete Choice Model. Journal of Real Estate Research, Vol. 27, No. 4, 2006, Available at SSRN: https://ssrn.com/abstract=953788

Bulent Uyar (Contact Author)

University of Northern Iowa ( email )

Cedar Falls, IA 50614
United States

Kenneth H. Brown

University of Northern Iowa - College of Business Administration - Department of Economics ( email )

Cedar Falls, IA 50614
United States

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