The efficiency of land taxation has long been a subject of interest among urban economists and scholars of local public finance. This paper first develops a computable general equilibrium model of the New York City economy, calibrated to the fiscal and economic environment in which the city operates. We then provide simulations of the effects of replacing part or all of the City's current tax system with a land tax. Since some of the key underlying parameters are unknown, the paper describes the research that is needed for a thorough evaluation of such a policy change. We describe the results given the assumptions we have adopted, and conclude with a discussion of the benefits of moving to land taxation in New York, including a discussion of the political economy of local taxation
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