THE HOMEVOTER HYPOTHESIS
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The Homevoter Hypothesis
William Fischel, in the Homevoter Hypothesis, argues that just like investors want the companies they have invested in to perform well, homeowners share a financial interest in the success and achievement of their communities. The rise in the principal asset of the home owner; his or her home, is dependent on the conditions existing in the wider community including levels of crime rates and property tax, and other amenities and services available. This paper analyzes reviews the book in the context of the Canadian situation.
The crystallization of the connections that exists between homeowners or ownership and political involvement in the book calls …show more content…
The argument is that they become obsessively fixated on property values, hence leading to suboptimal yields. This is one of the problems he identifies of localism, hence the argument for decisions and policies to be argued for at the national level. He argues that the existing forms of local control should be shaped by the intervention of the government. The government has a role of correcting market failures. This is accomplished by breaking private monopolies by way of nationalizing them, regulating prices or bringing about competition. The government also bears the responsibility of ensuring that free riders pay for the goods that they consume. Negative externalities can be internalized by making creators of bad to pay for the cost of their actions. Examples of these would be destructive use of land or the commuter use of city roads. Access to services is a matter of justice hence the government can increase the access to these services in order to correct market …show more content…
This places property tax as a benefit tax which is supposed to take care of the free services that are rendered to property owners. The tax base for property tax is the value of the property on which the tax is being levied. The value based on the area value which includes the cost of land, site value which is calculated adding the improvements on the property to the cost of the land in question, and the rent value which is based on the revenue that is generated from commercial or rental activities conducted on the
Name
University
Course
Instructor
Date
The Homevoter Hypothesis
William Fischel, in the Homevoter Hypothesis, argues that just like investors want the companies they have invested in to perform well, homeowners share a financial interest in the success and achievement of their communities. The rise in the principal asset of the home owner; his or her home, is dependent on the conditions existing in the wider community including levels of crime rates and property tax, and other amenities and services available. This paper analyzes reviews the book in the context of the Canadian situation.
The crystallization of the connections that exists between homeowners or ownership and political involvement in the book calls …show more content…
The argument is that they become obsessively fixated on property values, hence leading to suboptimal yields. This is one of the problems he identifies of localism, hence the argument for decisions and policies to be argued for at the national level. He argues that the existing forms of local control should be shaped by the intervention of the government. The government has a role of correcting market failures. This is accomplished by breaking private monopolies by way of nationalizing them, regulating prices or bringing about competition. The government also bears the responsibility of ensuring that free riders pay for the goods that they consume. Negative externalities can be internalized by making creators of bad to pay for the cost of their actions. Examples of these would be destructive use of land or the commuter use of city roads. Access to services is a matter of justice hence the government can increase the access to these services in order to correct market …show more content…
This places property tax as a benefit tax which is supposed to take care of the free services that are rendered to property owners. The tax base for property tax is the value of the property on which the tax is being levied. The value based on the area value which includes the cost of land, site value which is calculated adding the improvements on the property to the cost of the land in question, and the rent value which is based on the revenue that is generated from commercial or rental activities conducted on the