{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,7,27]],"date-time":"2026-07-27T21:00:50Z","timestamp":1785186050021,"version":"3.55.0"},"posted":{"date-parts":[[2026]]},"group-title":"SSRN","reference-count":35,"publisher":"Elsevier BV","content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":[],"abstract":"<jats:p>Land value taxes (LVTs) tax land values, exempting buildings. Arnott and Stiglitz (1979) show that a 100% LVT can finance local public goods without distortion. This result fails once assessed land values capitalize neighboring spillovers, which enter the base only when they cross property lines. An LVT then favors merging parcels under positive spillovers and splitting under negative ones, and subsidizes externalities that depress neighbors' assessed land, functioning as an inverse Pigouvian subsidy. Difference-indifferences estimates from Cook County splits and mergers (2001-2023) confirm the required mechanism: assessed land values move in opposite directions, reversing between nuisance and positive-spillover exposures.<\/jats:p>","DOI":"10.2139\/ssrn.7107758","type":"posted-content","created":{"date-parts":[[2026,7,27]],"date-time":"2026-07-27T17:33:21Z","timestamp":1785173601000},"source":"Crossref","is-referenced-by-count":0,"title":["Drawing the Line: The Spatial Non-Neutrality of Land Value Taxation"],"prefix":"10.2139","author":[{"ORCID":"https:\/\/orcid.org\/0009-0007-6057-0557","authenticated-orcid":true,"given":"Pedro","family":"Aldighieri","sequence":"first","affiliation":[],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"78","reference":[{"issue":"4","key":"ref1","doi-asserted-by":"crossref","first-page":"471","DOI":"10.2307\/1884466","article-title":"Aggregate land rents, expenditure on public goods, and optimal city size","volume":"93","author":"R J Arnott","year":"1979","journal-title":"Quarterly Journal of Economics"},{"issue":"2","key":"ref2","doi-asserted-by":"crossref","first-page":"169","DOI":"10.1016\/j.jue.2009.08.005","article-title":"Can the land tax help curb urban sprawl? 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