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Financing Public Goods and Residential Location

Department of Economics, Claremont Graduate School, Claremont, California

This article introduces public goods into a residential land use model and examines the locational consequences of alternative methods for financing such goods. Public goods are differentiated according to their spatial characteristics and the effects on rent and density gradients examined. The effects on rents and density are shown to differ according to whether the public goods are financed by benefit taxes, income taxes, property taxes, or land value taxes.

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