The Homevoter Hypothesis
How Home Values Influence Local Government Taxation, School Finance and Land-Use Policies
By (author) William A. Fischel
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Homevoter Hypothesis by William A. Fischel
Book DescriptionJust as investors want the companies they hold equity in to do well, homeowners have a financial interest in the success of their communities. If neighborhood schools are good, if property taxes and crime rates are low, then the value of the homeowner s principal asset his home will rise. Thus, as William Fischel shows, homeowners become watchful citizens of local government, not merely to improve their quality of life, but also to counteract the risk to their largest asset, a risk that cannot be diversified. Meanwhile, their vigilance promotes a municipal governance that provides services more efficiently than do the state or national government.Fischel has coined the portmanteau word homevoter to crystallize the connection between homeownership and political involvement. The link neatly explains several vexing puzzles, such as why displacement of local taxation by state funds reduces school quality and why local governments are more likely to be efficient providers of environmental amenities. "The Homevoter Hypothesis" thereby makes a strong case for decentralization of the fiscal and regulatory functions of government."
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Book DetailsISBN: 9780674015951
(229mm x 146mm x 25mm)
Imprint: Harvard University Press
Publisher: Harvard University Press
Publish Date: 1-Feb-2005
Country of Publication: United States
Books By Author William A. Fischel
Making the Grade, Hardback (November 2009)View all books by William A. Fischel
A significant factor for many people deciding where to live is the quality of the local school district, with superior schools creating a price premium for housing. This title argues that the historical development of school districts reflects Americans' desire to make their communities attractive to outsiders.
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Author Biography - William A. Fischel
William Fischel is Professor of Economics, Dartmouth College.
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