Do political parties matter for property taxes?
We evaluate whether political partisanship affects local taxes in an emerging economy. Using detailed residential property-level data in Chile, we study whether mayors' political leanings affect the reassessment process and thus the taxes paid by home owners. In Chile, this type of tax is espec...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Public Library of Science (PLoS)
2025-01-01
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| Series: | PLoS ONE |
| Online Access: | https://doi.org/10.1371/journal.pone.0319994 |
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| _version_ | 1849731735801036800 |
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| author | Felipe Aldunate Cristobal Diaz Santiago Truffa |
| author_facet | Felipe Aldunate Cristobal Diaz Santiago Truffa |
| author_sort | Felipe Aldunate |
| collection | DOAJ |
| description | We evaluate whether political partisanship affects local taxes in an emerging economy. Using detailed residential property-level data in Chile, we study whether mayors' political leanings affect the reassessment process and thus the taxes paid by home owners. In Chile, this type of tax is especially relevant since it is one of the largest sources of municipal income. To address endogeneity concerns, we use a regression discontinuity design, exploiting the quasi-experimental variation provided by close municipal elections. Our main results show that after a right-wing mayor is elected, property assessments increase up to 31% more than in a similar municipality where a left-wing mayor was elected. This effect cannot be fully explained by changes in prices or property characteristics. |
| format | Article |
| id | doaj-art-2a709e296dd74170ba811361fe40435c |
| institution | DOAJ |
| issn | 1932-6203 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | Public Library of Science (PLoS) |
| record_format | Article |
| series | PLoS ONE |
| spelling | doaj-art-2a709e296dd74170ba811361fe40435c2025-08-20T03:08:27ZengPublic Library of Science (PLoS)PLoS ONE1932-62032025-01-01205e031999410.1371/journal.pone.0319994Do political parties matter for property taxes?Felipe AldunateCristobal DiazSantiago TruffaWe evaluate whether political partisanship affects local taxes in an emerging economy. Using detailed residential property-level data in Chile, we study whether mayors' political leanings affect the reassessment process and thus the taxes paid by home owners. In Chile, this type of tax is especially relevant since it is one of the largest sources of municipal income. To address endogeneity concerns, we use a regression discontinuity design, exploiting the quasi-experimental variation provided by close municipal elections. Our main results show that after a right-wing mayor is elected, property assessments increase up to 31% more than in a similar municipality where a left-wing mayor was elected. This effect cannot be fully explained by changes in prices or property characteristics.https://doi.org/10.1371/journal.pone.0319994 |
| spellingShingle | Felipe Aldunate Cristobal Diaz Santiago Truffa Do political parties matter for property taxes? PLoS ONE |
| title | Do political parties matter for property taxes? |
| title_full | Do political parties matter for property taxes? |
| title_fullStr | Do political parties matter for property taxes? |
| title_full_unstemmed | Do political parties matter for property taxes? |
| title_short | Do political parties matter for property taxes? |
| title_sort | do political parties matter for property taxes |
| url | https://doi.org/10.1371/journal.pone.0319994 |
| work_keys_str_mv | AT felipealdunate dopoliticalpartiesmatterforpropertytaxes AT cristobaldiaz dopoliticalpartiesmatterforpropertytaxes AT santiagotruffa dopoliticalpartiesmatterforpropertytaxes |