property taxes. [If you would like more background on this topic, you can read Kenneth T. Rosen, "The Impact of Proposition 13 on House Prices in Northern California: A Test of the Interjurisdictional Capitalization Hypothesis," Journal of Political Economy 90 (1982): 191-200]. In particular, he examined the effect of the adoption of Proposition 13 in California on house prices. Proposition 13, enacted in June, 1978, required communities to reduce their property taxes, but guaranteed that the level…
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