Suppose a local government decides to increase the tax rate on residential properties under its jurisdiction. What will be the effect of this on prices of residential houses? How would you set up an econometric study to assess the consequences of imposing the tax increases?

If a local government decides to increase the tax rate on residential properties under its jurisdiction, then the effect of this on prices of residential houses will be higher. I would set up an economic study of the increased tax rate and how it affects the residents buying houses.