Effects of Fiscal Policies on House Prices

Why is housing more expensive in some places than in others and what communal characteristics influence house prices? Do property price differentials between communities exist due to differences in local taxes and public services and, if so, do they persist over time? Do property prices reflect differences in communal debts and what are the consequences? These questions will be analyzed and answered in this book. They form part of the grand quest in urban economics, local public finance and economic geography to understand the location decisions of people and the consequences of their choices. The subprime mortgage crisis in the United States and the resulting financial turmoil have shown that information concerning the determinants of property values is of major importance for property owners, policy makers, mortgage banks and other financial institutions. By analyzing the influence of fiscal policies and diverse communal factors on house prices this book contributes to enhancing our understanding which communal characteristics determine property values.