You can take it with you: Proposition 13 tax benefits, residential mobility, and willingness to pay for housing amenities

1 Much of the intuition on household sorting was theoretical work in local public finance that started i includes Epple and Zelenitz (1981), Epple et al. (19 Fernandez and Rogerson (1996), Nechyba (1997) and E 2 Recent examples are found in Barrow and Rouse Bajari and Kahn (2005). 3 As Rubinfeld (1987) points out “the value and usef likely to diminish in the future, and an alternative or alte Quigley (2002) for a survey about the different types o ☆ Thefirst versionof thispaper circulated in2004under th Transferability of Proposition 13 Tax Benefits, ResidentialMo Housing Amenities”. ⁎ University of Pennsylvania and NBER The Whart Philadelphia, PA 19104 United States. E-mail address: [email protected].