What does done look like?

• [x] Define required parameters and relevant research
• [x] For each parameter provided starting value and/or discover mechanism
• [x] Define next steps for model workup

1. Land Price Reaction & Capitalization

Parameter: Total pass‑through to land prices

• Theoretically, with perfectly inelastic land supply, 100% of LVT burdens is capitalized into land price reductions (pass-through 1-to-1).
• However, a natural experiment in Denmark found no measurable price decline following land tax hikes, suggesting zero upfront capitalization in practice (ckwroblewski.github.io).

Parameter: Speculative discount / announcement effect

• Model investor expectations: a lagged dynamic adjustment—anticipation may partially price in tax for some years.
• Use previous assumptions in sensitivity analysis: https://www.commonwealth.ca/research/lvt-sensitivity-analysis

2. Economic Efficiency & Land Use

Parameter: Land use intensification elasticity

• Evidence shows that land taxation is associated with higher density, urban diversity, new business formation—implying responsiveness in conversion decisions (SSRN, Maxwell School).

Parameter: Productivity or GDP multiplier effect