Decision-Making

insights

Taxing land-values may distort the choice between earlier and later development of unused parcels of land in favor of projects that promise an earlier stream of revenue. This may distort efficient land use. The Pittsburgh experience affirms standard economic theory, predicting that a major increase in land value taxation should be neutral. That is, have little impact on development decisions. Based on the results of a natural experiment in Denmark, land value taxation doesn't distort economic decisions because it doesn't distort the user cost of land. The “overwhelming majority” of supervisory board decisions under codetermination are unanimous. 81% of Swedish managing directors report codetermination does not hinder effective decision-making.

sources

Codetermination in Sweden: Myth and Reality Co-Determination and Innovation Land Taxes and Housing Prices The Impact of Urban Land Taxation: The Pittsburgh Experience

authors

Klas Levinson R. Dewenter Jörg Stank Kornelius Kraft Poul Schou Mads Rahbek Jørgensen Anne Kristine Høj Robert M. Schwab

reports

Codetermination Land Value Tax