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Social Housing under Oligopoly

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  • Usategui Díaz de Otalora, José María
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    Abstract

    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.

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    File URL: https://addi.ehu.es/bitstream/10810/6700/1/wp2008-04.pdf
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    Bibliographic Info

    Paper provided by University of the Basque Country - Department of Foundations of Economic Analysis II in its series DFAEII Working Papers with number 2008-04.

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    Date of creation: Mar 2008
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    Handle: RePEc:ehu:dfaeii:200804

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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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    Keywords: social housing; imperfect competition; housing stock;

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