| 英文摘要 |
We exploit exogenous changes in land value tax burden caused by a municipal-level government reform in 2010 to examine the property tax capitalization. In 2010, three pairs of counties and cities were merged into three municipalities (Taichung City, Tainan City, and Kaohsiung City), resulting in increases in taxes of lands of the original cities and decreases in taxes of lands of the original counties. Using 2007–2015 land transaction data, the difference-in-difference estimates suggest robust evidence of capitalization in lands of the original counties. However, there are mixed results on capitalization in the lands of the original cities. |
