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9 votes

Why can't the Land-Value Tax (in some cases) be passed on to tenants?

Because the supply of land is essentially fixed, land rents depend on what tenants are prepared to pay, That doesn't make any sense. If more people want to live in a particular place, rents ...
Brythan's user avatar
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3 votes

Are urban land (location) markets considered competitive even though the market price does not equal marginal cost (zero)?

Existence of rent has nothing to do with whether market is competitive or not. First there are different definitions of rent. As explained in the Palgrave dictionary of economics (Alchian 2017): Rent’...
1muflon1's user avatar
  • 57k
3 votes

Why can't the Land-Value Tax (in some cases) be passed on to tenants?

There's the theory, and there's the reality. Let's say there's an across-the-board rent tax of \$100 per property. The theory is that if landlords could just arbitrarily increase rent by \$100, they ...
Bill Clark's user avatar
3 votes
Accepted

Is soil exhaustion rational?

The true answer is of course it depends. What it depends on is how you define sustainability. In a natural resources context, with weak sustainability, soil quality is a capital asset, just as a fish ...
Maarten Punt's user avatar
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3 votes
Accepted

Today's value of the Louisiana Purchase?

The video has a transcript with the references. The \$0.25B figure is obtained from here (after adjusting for inflation). Unfortunately, the author does not provide a source for the \$1.2B figure. ...
luchonacho's user avatar
  • 8,591
2 votes

How does 'building land' fit into economic modeling?

It is important to distinguish between a) the total stock of building land, much of which may be already built upon, and b) that (usually small) part of the stock on which new building takes place in ...
Adam Bailey's user avatar
  • 8,529
2 votes

How does 'building land' fit into economic modeling?

Land would fit into production functions or many economic models the same/similar way as other factors of production. An example of general Cobb-Douglas function with land would be: $$Y(K,L,T) = A K^...
1muflon1's user avatar
  • 57k
2 votes

What are the drivers of the price of land?

Because of population growth, savings, and technological innovation the stock of capital and augmented labor are growing over time. These forces raise the marginal product of land. Unlike capital, the ...
BKay's user avatar
  • 16.3k
2 votes

Are urban land (location) markets considered competitive even though the market price does not equal marginal cost (zero)?

We could argue about some of your assumptions, but that would lead to unnecessary opinion-based discussion. In a (perfectly) competitive market everyone is a price taker. This is not the case here. ...
Bayesian's user avatar
  • 5,291
2 votes

Who bears the burden of a land value tax over the long-term?

Who bears the burden of a land value tax over the long-term? Tax burden is determined by relative elasticity of supply & demand. The tax burden generally falls mostly on the side that is less ...
1muflon1's user avatar
  • 57k
1 vote

If land value taxes should be estimated at highest and best use, wouldn't that mean that planning/zoning gain would not be captured?

Highest and Best Use is based upon what is legally permissible. "The highest and best use considers only the uses that are legally permissible (meeting zoning, health, and public restrictions), ...
user13353's user avatar
1 vote

Why is land considered fixed if the supply of land for a particular use is not fixed?

Why is land considered fixed if the supply of land for a particular use is not fixed? Land is not considered always fixed. You are making overgeneralization. In many 101 textbooks land will be ...
1muflon1's user avatar
  • 57k
1 vote
Accepted

Who bears the burden of a land value tax over the long-term?

The burden of a land value tax falls, as you say, on those who are landowners at the time the tax is introduced. A key to this question is to recognise that for land, as for many capital assets, there ...
Adam Bailey's user avatar
  • 8,529
1 vote

Is there a way to assess land value independently of zoning policy?

If there are some cities with no zoning you can estimate the value of zoning restrictions using the hedonic method. Afterwards you can just subtract that value from property. However, doing so will ...
1muflon1's user avatar
  • 57k
1 vote

How much revenue could an 100% land value tax be able to generate for the Indian government?

In Australia, Prosper compiled a survey of all economic rents and came to the conclusion that the Australian government could effectively be funded with rents alone. This is without taking into ...
sba222's user avatar
  • 831
1 vote

Do all taxes come out of rents (ATCOR)?

The acronym itself might be new but the idea actually predates 2009, and is generally rejected in mainstream economics. For example, see Feldstein (1977) which shows that in fact even tax on pure land ...
1muflon1's user avatar
  • 57k
1 vote
Accepted

What does it mean that households provide the four factors of production?

While it’s true that firms can pay other firms for land or capital (and in fact firms can pay another firms for entrepreneurship - you can hire consulting firms, and there are also firms that ‘borrow’ ...
1muflon1's user avatar
  • 57k
1 vote

How Does Land Value Tax (e.g. Georgism) Decouple Lease Transfer From Improvement Transfer?

In practical terms the leaseholder will need a certain degree of certainty over her future rent payments on the lease to be able to make the investment. That’s why leaseholds often have long durations ...
sba222's user avatar
  • 831
1 vote

Why doesn't land value go to 0 when tax rate goes to 100%?

The correct answer is that it does not. It goes to zero as tax rate increases to infinity. The reason for that is that the rent derived from land (assuming away any necessary land maintenance) can be ...
1muflon1's user avatar
  • 57k
1 vote

Why can't the Land-Value Tax (in some cases) be passed on to tenants?

Supply response causes a change in prices, the incidence which is shared between the producer and the consumer. As land is defined as everything not supplied by human effort, thus perfectly inelastic, ...
benjamin weenen's user avatar
1 vote

Why are many railroad rights-of-way held in easement rather than in fee simple?

Though these are only educated guesses (contract law is not my forte) I'd suppose that there might be a few reasons why this is: It's best able to handle the competing interests of the parties ...
AndrewC's user avatar
  • 1,380

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