Story Name: Taxes and Home Prices
Datafile Name: Albuquerque Home Prices
Abstract: How taxes change in response to changing market value of homes is a question
of concern to citizens as a policy matter as well as a personal financial concern.
The tax data included in the datafile Home Prices permit an examination of this
question for used homes in Albuquerque in 1993. The linear relation between
taxes and resale value is influenced by a few undertaxed expensive homes. In
addition, the relation suffers from increasing residual error with increasing price.
The student is encouraged for these reasons to transform the analysis to one
of log taxes versus log price, and to comment on the progressiveness or regres-
siveness of the result.
