Land Taxation in New York City: A General Equilibrium Analysis

A computable general equilibrium model of the New York City economy is generated to study the efficiency of land value taxation in a dense, urban context. The authors find significant efficiency gains to be had from eliminating the distortion introduced by capital and labor taxation. They conclude with a suggestion that, given the politics of land taxation, the most likely candidates to adopt LVT may have the least to gain, while those with the most to gain, like NYC, may encounter insurmountable political barriers to such reforms.