Faculty Publications

Title

Impact of local public services and taxes on dwelling choice within a single taxing jurisdiction: A discrete choice model

Document Type

Article

Journal/Book/Conference Title

Journal of Real Estate Research

Volume

27

Issue

4

First Page

427

Last Page

443

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.

Original Publication Date

10-1-2005

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