September 1991
Federal Reserve Bank of Dallas

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Government Budgets and Property Values
Lori L. Taylor

Lori L. Taylor debunks several popular beliefs as she examines how property values relate to taxes, government services, and government debt. She finds that, contrary to popular belief, property values do not necessarily decrease when local governments increase taxes to pay for services. Her analysis reveals that taxpayers value all types of government services, including transfer payments such as welfare and health services. Taylor's work also suggests that people do not automatically prefer deficit spending to tax increases.

Methanol as an Alternative Fuel: Economic and Health Effects
Mine K. Yucel

Methanol, because of its low pollution characteristics, is a possible alternative to gasoline as a motor fuel. In this article, Mine K. Yucel calculates the economic, pollution, and health effects of switching from gasoline to methanol fuels.

Yucel finds that use of methanol would lower oil demand and oil prices, while increased demand for methanol's natural gas feedstock would increase natural gas prices. Fuel prices would increase because methanol is more costly than gasoline. However, methanol use would reduce ozone pollution and some of the health risks associated with gasoline.