Property Tax Abatement and the Simultaneous Determination of Local Fiscal Variables in a Metropolitan Area
研究大都市区内社区和企业对地方企业财产税减免的行为，利用底特律1977-87年面板数据估计联立方程模型，发现减免虽能扩大非住宅税基，但会降低房价、提高税率并增加州补贴。
A model is given for the behavior of communities and firms in regards to the granting of local firm property tax abatements in a metropolitan area. The model yields a system of simultaneous equations that are estimated using a 1977-87 panel data set from the Detroit metropolitan area. Results indicate that firm property tax abatements are offered by a community to offset noncapitalized profit-reducing characteristics. Property tax abatements are effective at increasing nonresidential property bases, but at costs (decreased home values, increased local property tax rates, and increased state subsidies to local governments) that should not be ignored by policy makers.