|
Abstract:
|
Urban sprawl is a reality in America, and while sprawl has its proponents, the term has been generally associated with negative consequences for the social, economic, and environmental health of urban areas. Thus, there is a need for sprawl-control policies that are both effective and politically feasible. This study represents an attempt to determine whether or not the adoption of a split-rate property tax system is such a policy. Using a sample of Pennsylvania cities and boroughs, the significance of the split-rate tax system in determining population density will be explored. The study uses difference-in-difference methods to compare the density of places with split-rate systems to places with traditional property tax systems between 1980 and 1990. The findings indicate that the split-rate property tax system actually reduces that rate of density increase. This relationship is opposite that proposed by economic theory. Although the low number of cities that use the split-rate system are a hindrance to statistical analysis, empirical evidence suggests that the split-rate system may actually increase urban sprawl. |