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Policy Coordination in an Oligopolistic Housing Market

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Author Info
Ana I. Saracho () (The University of the Basque Country)
José M. Usategui () (The University of the Basque Country)

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Abstract

This paper analyzes the consequences of the interaction between two different levels of government (regulators) in the development of housing policy when their decisions determine the level of competition in the housing market. The analysis discusses the implications derived from a lack of coordination between a local regulator who controls the supply of land for housing development and a central regulator who decides on housing subsidies. The results suggest that lack of coordination has significant effects on prices and supply of houses, housing developers' profits, and buyers' surplus.

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Publisher Info
Paper provided by University of the Basque Country - Department of Foundations of Economic Analysis II in its series DFAEII Working Papers with number 200802.

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Date of creation: 14 Mar 2008
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Handle: RePEc:ehu:dfaeii:200802

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Postal: Dpto. de Fundamentos del Análisis Económico II, Facultad de CC. Económicas y Empresariales, Universidad del País Vasco, Avda. Lehendakari Aguirre 83, 48015 Bilbao, Spain
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Related research
Keywords: Imperfect competition; housing policy coordination;

Find related papers by JEL classification:
L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
L50 - Industrial Organization - - Regulation and Industrial Policy - - - General

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This page was last updated on 2009-11-17.

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