Regional Science and Urban Economics

Using school district spending, we find empirical support that a higher share of residents deducting property taxes causes a greater capitalization of local public spending. In particular, a one-standard-deviation increase in school spending corresponds to a 1.2% decrease in house value in school districts where no resident deducts property taxes but to a 2.8% rise in values in districts where 25% of the residents take advantage of the property tax deduction.

https://link.theoverheadwire.com/pnhbtRead more...