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Social Housing under Oligopoly

Usategui Díaz de Otalora, José María

In this paper it is shown that the setting up of a social housing system may decrease the total number of houses built in the market, induce a price of non-social houses greater than the price of houses without that system and increase the profits of housing developers even in situations where they have to sell social houses at a price below production cost. The analysis considers a situation with imperfect competition in the housing market and with a social housing system where housing developers must provide some social houses when they obtain a permit to build non-social houses. ; Financial support from the Ministerio de Educación y Ciencia (SEJ20006-06309 and BEC2003-02084) and from the Departamento de Educación, Universidades e Investigación del Gobierno Vasco (IT-313-07) is gratefully acknowledged.

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Social Housing under Oligopoly

Usategui Díaz de Otalora, José María

In this paper it is shown that the setting up of a social housing system may decrease the total number of houses built in the market, induce a price of non-social houses greater than the price of houses without that system and increase the profits of housing developers even in situations where they have to sell social houses at a price below production cost. The analysis considers a situation with imperfect competition in the housing market and with a social housing system where housing developers must provide some social houses when they obtain a permit to build non-social houses. ; Financial support from the Ministerio de Educación y Ciencia (SEJ20006-06309 and BEC2003-02084) and from the Departamento de Educación, Universidades e Investigación del Gobierno Vasco (IT-313-07) is gratefully acknowledged.

Social Housing under Oligopoly

Usategui Díaz de Otalora, José María

In this paper it is shown that the setting up of a social housing system may decrease the total number of houses built in the market, induce a price of non-social houses greater than the price of houses without that system and increase the profits of housing developers even in situations where they have to sell social houses at a price below production cost. The analysis considers a situation with imperfect competition in the housing market and with a social housing system where housing developers must provide some social houses when they obtain a permit to build non-social houses. ; Financial support from the Ministerio de Educación y Ciencia (SEJ20006-06309 and BEC2003-02084) and from the Departamento de Educación, Universidades e Investigación del Gobierno Vasco (IT-313-07) is gratefully acknowledged.

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Title:

Social Housing under Oligopoly

Contributors:

Usategui Díaz de Otalora, José María (author)

Publication date:

2008-03-01

Remarks:

RePEc:ehu:dfaeii:200804

Type of media:

Paper

Type of material:

Electronic Resource

Language:

English

Keywords:

R31 , ECONOMETRICS AND FINANCE , housing stock , ECONOMICS , social housing , imperfect competition , L13 , RURAL , L50 , AND REGIONAL ECONOMICS , URBAN , INDUSTRIAL ORGANIZATION

Classification:

DDC: 720

Licence:

http://creativecommons.org/licenses/by-nc-sa/3.0/

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