His interests include public finance, governance theory, and economic philosophy. His recent publications include Public Goods and Private Communities, Beyond Neoclassical Economics, and “Municipal Public Finance” in Handbook of Public Finance.
Market-hampering Land Speculation: Fiscal and Monetary Origins and Remedies
Article first published online: 3 JUL 2006
American Journal of Economics and Sociology
Volume 57, Issue 4, pages 615–637, October 1998
How to Cite
Foldvary, F. E. (1998), Market-hampering Land Speculation: Fiscal and Monetary Origins and Remedies. American Journal of Economics and Sociology, 57: 615–637. doi: 10.1111/j.1536-7150.1998.tb03382.x
- Issue published online: 3 JUL 2006
- Article first published online: 3 JUL 2006
Abstract Market-hampering land speculation destabilizes and distorts development, and shifts income unjustly to landowners. Its fiscal origin is the lack of public collection of the site rent. The monetary origin is a centrally controlled money supply that injects excessive credit, fueling malinvestments in real estate. The remedies are both the public collection of land rent and a free market in money and banking, hence a money supply that responds flexibly to market demand while maintaining a stable unit of account. Rent collection option contracts could increase the scope of market-enhancing land speculation that spreads and reduces risk.