The American Property Tax: Its History, Administration, and Economic Impact

Abstract

REVIEWSThe next four chapters review some interesting research applications of the games at Purdue University. These include the use and value of information for decision making, the behavioral aspects of decision making, and use of games in determining managerial success. Four appendices provide the computer program for each game in Fortran II language. Individual game manuals for use by participants are available from the authors.

Reply: Time and Taxes, Again

“…But only if savers have unity elasticity of demand for claims to future income streams while business enterprises have an infinitely elastic supply schedule for these same income sources will the interest rate change equal the tax rate. In that event a 1 percent property tax on all sources of capital creation creates equal reductions in net income and interest ratesthe numbers above illustratethat will indeed yield strictly neutral results, just as Chisholm claims (on behalf of himself and Gaffney) and as Thomson (1965) said several years before Gaffney's article appeared. A world of diminishing returns with a convex (from above) production possibility curve between present consumption (bread) and sources of future income (baking ovens) means that the supply schedule for future steams cannot be perfectly elastic, so that the interest rate falls by less than the extent of the tax.…”