CEAS' Director recently published an article with the researchers Ernesto López-Morales, Sebastián Espinoza, Felipe Órdenes and Hernán Orozco. The investigation, published in the Environment and Planning A: Economy and Space journal, assesses how public infrastructure and investments affect the market value of the land.
“Our goal was to quantify the profits associated to land that are generated by exogenous reasons, such as the construction of a Subway Station”, Claudia Sanhueza explains.
Asides from this, she explains that from an economic point of view, it is efficient to tax these properties, given that this increase in profit is not associated to a higher productivity that can be attributed to people. “If the State built a Subway Station and the owner of that land could build an appartment building that increased in value because they were near to this station, then it is economically efficient to tax that property”.
You can check the article COES made about this publication here (in spanish).
