> It seems obvious that this only works if the amount of the land tax isn't large enough to cause these behavioral changes. It's about the speed of the transit

> It seems obvious that this only works if the amount of the land tax isn't large enough to cause these behavioral changes. It's about the speed of the transition to LVT, not the stateless amount of LVT. > But then you get the opposite problem. Real estate prices crash, because there are suddenly twelve story buildings going up everywhere and the prices need to fall to the level that building more of them isn't viable even against the tax advantage. Which is well before you're saturated with tall buildings. Only if the LVT goes up to quick. Because the value of the land depends on the improvement to adjacent land, we can think of human building as a puddle of liquid that LVT makes more cohesive. If we crank of the cohesion too quick, we get tiny beads of liquid everywhere, you scattered 12 storey buildings, and no walkability. It's just a modernist landscape. If we grank of the cohension slowly, we get bigger beads, i.e. new manhattens as the surrounding suburbia is drained. This is exactly what we want. The increased density itself creates more derived value, and so a big crash is unlikely.