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Capitalization of Public Goods and Its Distribution Effect: Empirical Evidences and Policy Implications in China

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Author(s): Yuanfeng Liu | Shenbo Yi

Journal: International Journal of Business Administration
ISSN 1923-4007

Volume: 2;
Issue: 1;
Date: 2011;
Original page

ABSTRACT
Capitalization of public goods refers to the economic phenomenon that some assets absorb the cost of public goods and the prices of assets rise consequently. It results in an interpersonal and interregional income distribution effect. The distribution effect from capitalization of public goods illuminates that it is reasonable to levy property tax and provide more public goods in rural areas.
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