This effect was formalized by Joseph Stiglitz 40 years ago, with his "Henry George Theorem"[0]―namely that "aggregate spending by government on public goods wil

This effect was formalized by Joseph Stiglitz 40 years ago, with his "Henry George Theorem"[0]―namely that "aggregate spending by government on public goods will increase aggregate rent based on land value (land rent) more than that amount, with the benefit of the last marginal investment equaling its cost". This is a big reason so much of urban planning today has latched onto Value Capture of a way of financing infrastructure. In cases like Hong Kong's subway system, you can pay for world-class transit without any additional taxes, merely letting the subway capture the increases in land values that it creates.[1] [0] https://en.wikipedia.org/wiki/Henry_George_theorem https://en.wikipedia.org/wiki/Henry_George_theorem [1] https://www.theatlantic.com/china/archive/2013/09/the-unique-genius-of-hong-kongs-public-transportation-system/279528/ https://www.theatlantic.com/china/archive/2013/09/the-unique...