Studies on land taxes specifically:

• Høj, A. K., Jørgensen, M. R., & Schou, P. (2018). Land Tax Changes and Full Capitalisation. Fiscal Studies, 39(2), 365-380.
• Borge, L. E., & Rattsø, J. (2014). Capitalization of property taxes in Norway. Public Finance Review, 42(5), 635-661. here "housing prices respond to property taxation and with full capitalization at realistic discount rates"
• Methods:
  • First study to use BD approach. Finds roughly full capitalization of tax rates. Cushing, B.J. 1984. Capitalization of Interjurisdictional Fiscal Differentials: An Alternative Approach. Journal of Urban Economics 15: 317–326
  • Use rental values instead of net user cost, to avoid underidentification. Find full capitalisation. Palmon, O. and B.A. Smith. 1998. A New Approach for Identifying the Parameters of a Tax Capitalization Model. Journal of Urban Economics 44: 299–316.
  • Similar to PS1998 but with machine-learning. Finds capitalization may be consistently underestimated. Grodecka-Messi, A., & Hull, I. (2019). The Impact of Local Taxes and Public Services on Property Values.
  • Using data that varies in taxes but not public services. Palmon, O. and B.A. Smith. 1998a. New Evidence on Property Tax Capitalization. Journal of Political Economy 106: 1099–1111
  • Clapp, J.M., A. Nanda and S.L. Ross. 2008. Which School Attributes Matter? The Influence of School District Performance and Demographic Composition on Property Values. Journal of Urban Economics 63: 451–466.

Property Tax in General

From Hilber 2017

• Full capitalization = 1973; King 1977; Stull & Stull 1991; Man & Bell 1996; Reinhard 1981 (over-capitalization)
• Oates W.E. 1969. The Effects of Property Taxes and Local Public Spending on Property Values: An Empirical Study of Tax Capitalization and the Tiebout Hypothesis. Journal of Political Economy 77: 957–971. "the bulk of the rise in taxes will be capitalized in the form of reduced property values"
• No capitalization = Pollakowsky 1973; Wales & Wiens 1974; Follain & Malpezzi 1981; McMillan & Carlson 1977 (theorise that their result is because of elastic supply in rural areas).
• Capitalization of school quality using BD methods: Black 1999 (first paper to use boundary discontinuity); Gibbons & Machin 2003, 2006, 2008; Davidoff & Leigh 2008; Fack & Grenet 2010; Gibbons, Machin & Silva 2013.
• Bogart & Cromwell (2000) school-redistricting & DID methods. Kane, Staiger & Riegg 2006 variation in boundaries.
• Palmon & Smith (1998a) use data that varies in taxes but not public services to isolate the effect of taxes and find full capitalization
• Palmon & Smith (1998b) use rental values instead of user cost and also find full capitalization
• Giertz, S. H., Ramezani, R., & Beron, K. J. (2021). Property tax capitalization, a case study of Dallas County. Regional Science and Urban Economics, 103680.

Little capitalization: Wales and Wiens (1974) Chinloy (1978) Gronberg (1979)

Varying degrees: King (1973, 1977) Edel and Sclar (1974) Gustely (1976) Rosen and Fullerton (1977) Dusansky, Ingber and Karatjas (1981) Richardson and Thalheimer (1981) Ihlanfeldt and Jackson (1982) Yinger et al. (1988) → “Special Consideration”

Full or overcapitalization: Oates (1973) Church (1974) Reinhard (1981)