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Property Tax Policy and Land-Use Change

In this study, we analyze the effect of property taxes on changes between agricultural, forestry, Conservation Reserve Program, and developed land uses in Louisiana. We estimate a random parameters logit model of land-use conversion from the National Resources Inventory plot data. Our results indicate that land-use changes are inelastic with respect to property taxes. Simulation shows that current use valuation policy, while slowing down development of rural lands, also affects changes between rural land uses. (JEL Q15, H23)