Property Tax Capitalization: Theory and Empirical Evidence

In an environment of increasing government expenditures financed largely viii through taxes, including a relatively visible and large residential property tax, the issue of whether property taxes are capitalized into market values is increasingly important. Property tax capitalization is the reflection of property taxes in the value of real property. The capitalization of property tax does not necessarily pose a problem; rather, problems arise when homes identical to each other have different taxes and these differentials are then capitalized into market values. These capitalized tax differentials result in large capital gains and losses to owners of real estate. This study (1) reviews existing economic theory and empirical evidence on the capitalization of property taxes, (2) develops a model of property valuation inclusive of tax effects, and (3) estimates the parameters of this model using a comprehensive data set of over 334 home sales in the Logan, Utah area. The empirical results include an estimate of the tax capitalization effect. Two closely related issues are also addressed in the study. They include: (I) changes in real estate prices, including a suggested method for measuring such change and (2) a study of property tax equity, including two specific measures of tax fairness. The conclusions are (I) tax differentials are capitalized; (2) real estate prices in the study area increased approximately 10 percent per year from 1989 to 1992; and (3) there is significant variation in assessment ratios

MEASURING NET BENEFITS RESULTING FROM UNIVERSITY-INDUSTRY COLLABORATION: AN EXAMPLE FROM THE NEW MEXICO CHILE TASK FORCE

Research and Development/Tech Change/Emerging Technologies,

Maintaining Parameter Invariance in Censored Micro-Level Data

Research Methods/ Statistical Methods,

Pecan marketing channels in New Mexico, 2010

Guide containing information on the marketing channels that New Mexico pecans passed through on their way to consumers in 2010

Regional branding in a global marketplace

Report containing information on the use of and regulations for branding agricultural products in international trade

Research and promotion program prospects in the chile industry

Report containing information on methods available for creating research and promotion programs within agricultural industries

Economic significance of food cooperatives in New Mexico

Estimates the economic impact of grocery cooperatives in New Mexic

Chile consumers and their preferences toward region of production-Certified chile peppers

This study explored the types of con­sumers who purchase two common types of chile pepper products-fresh green chile and dried, ground red chile powder-and provided an analysis of the market potential for a region of production-differentiated chile pepper by gauging consumer interest in red and green New Mexico ROP-certified chile products. Th

Using nonparametric methods to improve parametric demand estimation in the presence of binding non-negativity constraints with application to agribusiness management

Demand analysis at an individual level, using survey data, is becoming increasingly popular. While such analysis has many benefits it suffers from computational or econometric difficulties associated with non-consumption, i.e., problems associated with binding non-negativity constraints that occur due to non-consumption of one or more goods by some survey participants. The study presented here uses a modified generalized least squares approach to estimate consumer demands from survey data. The approach consistently accounts for the role of reservation prices within the participant\u27s consumption decision by estimating consumer reservation prices within the parameter estimation. The study examines the effectiveness of using nonparametric methods (specifically the Weak Axiom of Revealed Preference) in conjunction with parametric analysis. Two methods of incorporating nonparametric analysis are examined. First, nonparametric analysis is used to partition survey participants into sub-groups that may more meaningfully adhere to the implicit assumption that participants within the group have similar preference structures. Second, nonparametric analysis is used to construct lower bounds on reservation prices for non-consumed goods. These bounds are then integrated into the modified generalized least squares estimation procedure. Using data from a National Livestock and Meat Board Survey, the study shows that inclusion of nonparametrically derived information into parametric estimation can result in significant differences in parameter and elasticity estimates. Monte Carlo simulations are used to determine if observed differences can be considered significant improvements. The Monte Carlo simulations suggest that incorporation of nonparametric methods into parametric analysis results in not only different parameter estimates but in estimates that are more accurate. The improvements in parameter estimates were also observed in corresponding elasticity estimates. Two stylized agribusiness applications are provided in the dissertation. The first application indicates how inclusion of all information provided in a survey (including information obtained from nonparametric methods) can have significant implications for demand elasticity estimates and consequently agribusiness decisions. A second application shows how reservation price estimates obtained from the modified generalized least squares estimation may be used to target individuals or groups of individuals with special marketing and advertising programs, with the goal of increasing the profits of food manufacturers and retailers

Economic return to adoption of mechanical thinning: The case of New Mexico chile

Report containing information on using thinning in chile production and the economic returns of mechanical thinning versus hand thinning in chile production in Doña Ana and Sierra counties in New Mexico