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Housing subsidisation in the Netherlands; measuring its distortionary and distributional effects

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  • Harry ter Rele

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  • G. van Steen
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    Abstract

    This paper measures the distortionary and distributional effects of housing subsidies. The results are discussed in the light of the main justifications for subsidising housing, i.e. the merit-good argument, external effects and the distribution motive. Our measurements reveal some patterns of subsidisation that seem difficult to justify on these grounds. This applies especially to the differences between subsidisation of rental and owner-occupied housing, the differences between mortgage- and equity-financed ownership and the increase of relative subsidisation above a certain income level.

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    Bibliographic Info

    Paper provided by CPB Netherlands Bureau for Economic Policy Analysis in its series CPB Discussion Paper with number 2.

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    Date of creation: Sep 2001
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    Handle: RePEc:cpb:discus:2

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    1. Berkovec, James & Fullerton, Don, 1992. "A General Equilibrium Model of Housing, Taxes, and Portfolio Choice," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 390-429, April.
    2. Bovenberg, A.L. & Rele, H.J.M. ter, 1998. "Reforming Dutch capital taxation," Open Access publications from Tilburg University urn:nbn:nl:ui:12-76543, Tilburg University.
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    Cited by:
    1. Casper Ewijk & Bas Jacobs & Ruud Mooij, 2007. "Welfare Effects of Fiscal Subsidies on Home Ownership in the Netherlands," De Economist, Springer, vol. 155(3), pages 323-336, September.
    2. Machiel van Dijk & Richard Nahuis & Daniël Waagmeester, 2005. "Does public service broadcasting serve the public? The future of television in the changing media landscape," CPB Discussion Paper 43, CPB Netherlands Bureau for Economic Policy Analysis.
    3. Edwin Van Gameren & Michiel Ras & Evelien Eggink & Ingrid Ooms, 2005. "The demand for housing services in the Netherlands," ERSA conference papers ersa05p327, European Regional Science Association.

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