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A New Approach To Evaluating the Welfare of Decentralized Policies
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David R. Agrawal
William H. Hoyt
Tidiane V. Ly
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Disclaimer. This tool is still in beta stage and currently only reproduces applications in our paper. It will be expanded in the coming months to calculate the MCT for policies of your choice, allowing you to follow the prompts in the recipe book of our paper.
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Welfare effects of the policy
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Local MVPF
=
7.52277
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Social MVPF (state)
=
9.93918
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State MCT
=
0.243119
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State match rate
=
0.321212
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Social MVPF (federal)
=
∞ (-27.6624)
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Federal MCT
=
1.27195
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Federal match rate
=
-4.67715
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​Enter your assumptions
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Initial calibration
K-12 spending
Property tax cut
Economy​
Population share in the MSA
0.1738
Child per household
0.49
Share of owner-occupied houses
0.652
Housing rent
6540
Housing price
115195
Public policy intruments​
Local property tax rate
0.0108105
Local sales tax rate
0.01297
State income tax rate
0.026
State sales tax rate
0.0547
Federal income tax rate
0.162
Elasticities​
Housing supply elasticity
0.35
Elasticity of housing price w.r.t. public service
0.943
Wage effect of the policy
10.81
Property tax reaction function
0.3
Elasticity of housing price w.r.t. property tax
-0.197