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The Homevoter Hypothesis

The Homevoter Hypothesis

How Home Values Influence Local Government Taxation, School Finance, and Land-Use Policies

William A. Fischel

ISBN 9780674015951

Publication date: 02/15/2005

Just as investors want the companies they hold equity in to do well, homeowners have a financial interest in the success of their communities. If neighborhood schools are good, if property taxes and crime rates are low, then the value of the homeowner’s principal asset—his home—will rise. Thus, as William Fischel shows, homeowners become watchful citizens of local government, not merely to improve their quality of life, but also to counteract the risk to their largest asset, a risk that cannot be diversified. Meanwhile, their vigilance promotes a municipal governance that provides services more efficiently than do the state or national government.

Fischel has coined the portmanteau word “homevoter” to crystallize the connection between homeownership and political involvement. The link neatly explains several vexing puzzles, such as why displacement of local taxation by state funds reduces school quality and why local governments are more likely to be efficient providers of environmental amenities. The Homevoter Hypothesis thereby makes a strong case for decentralization of the fiscal and regulatory functions of government.


  • Although other commentators have bemoaned voter apathy and the lack of civic engagement, Fischel shows how democracy thrives at the local level. As the ‘homevoter’ looks at all the factors that affect property values—good schools, effective management of traffic, fewer undesirable uses such as landfills and prisons—he or she becomes politically engaged… The Homevoter Hypothesis…[is] an important contribution to the ongoing conversation about how best to manage growth.

    —Anthony Flint, Boston Globe


  • William A. Fischel is Professor of Economics, Dartmouth College.

Book Details

  • 344 pages
  • 1 x 5-3/4 x 9 inches
  • Harvard University Press

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