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Taxation of land and economic growth

Che, Shulu and Kumar, Ronald R. and Stauvermann, Peter J. (2021) Taxation of land and economic growth. Economies, 9 (2). pp. 1-20. ISSN 2227-7099

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In this paper, we theoretically analyze the effects of three types of land taxes on economic growth using an overlapping generation model in which land can be used for production or consumption (housing) purposes. Based on the analyses in which land is used as a factor of production, we can confirm that the taxation of land will lead to an increase in the growth rate of the economy. Particularly, we show that the introduction of a tax on land rents, a tax on the value of land or a stamp duty will cause the net price of land to decline. Further, we show that the nationalization of land and the redistribution of the land rents to the young generation will maximize the growth rate of the economy.

Item Type: Journal Article
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HJ Public Finance
Divisions: Faculty of Business and Economics (FBE) > School of Accounting and Finance
Depositing User: Ronald Kumar
Date Deposited: 05 May 2021 02:22
Last Modified: 05 May 2021 02:22

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