⚓ ANCHOR Impact
AI-Powered Simulation of New Jersey's Property Tax Relief Program
Simulating 1,000+ households across 21 NJ counties to evaluate how behavioral characteristics affect participation in the $2.2 billion ANCHOR program
The Problem
New Jersey has the highest property taxes in the United States, with average bills exceeding $10,000 annually. This creates acute affordability challenges, especially for lower-income households where taxes consume 15–25% of income.
- Morris County: Median income $137,623
- Cumberland County: Median income $68,067
- Gap: $69,556 disparity across counties
The Research Questions
- How do behavioral characteristics (financial literacy, trust, risk aversion) affect ANCHOR participation?
- Does ANCHOR achieve vertical equity, or do barriers create regressive participation?
- How do alternative program designs affect equity-efficiency trade-offs?
Participation Gap
Gap between highest and lowest income quintile participation rates (76% vs 49%)
Behavioral Barriers
Take-up reduction from application complexity and institutional distrust
Equity Improvement
Improvement possible through simplified applications and tiered benefit structures
ANCHOR Eligibility Rules
| Category | Income Threshold | Benefit Amount |
|---|---|---|
| Homeowner (Lower Income) | Under $75,000 | $2,000 |
| Homeowner (Higher Income) | $75,000 – $150,000 | $1,500 |
| Renter | Under $75,000 | $1,500 |
| Not Eligible | Above thresholds | $0 |
5 Policy Scenarios Simulated
Counterfactual: no ANCHOR program
Status quo: 30-min application, flat benefits
10-minute pre-populated forms
No application needed — 100% take-up
Higher burden ratio = higher benefit