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Changing the Role of the State in Subsidized Housing: The Case of a Developing Environment

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  • Nidal R. Sabri

Abstract

The study discusses the changing role of the state in subsidized housing with the aim of suggesting new alternative methods of financing housing projects in developing environments. The study argues the need for state interference in financing housing projects on condition that these projects be financially evaluated, and suggests several self-continuing means and institutions which may be used in this regard. The theoretical investment formulas and bases were presented in order to fulfill the social and economic objectives of the subsidized housing sector. The study concluded that a fiscal year basis formula is relevant to financial institutions which are subsidized by public funds. A project basis formula using present value of cash flows is a relevant technique to be used by local and international construction firms, while a life project basis is a relevant technique to be considered by public construction firms.

Suggested Citation

  • Nidal R. Sabri, 1995. "Changing the Role of the State in Subsidized Housing: The Case of a Developing Environment," Working Papers 9505, Economic Research Forum, revised 03 Feb 1995.
    • Handle: RePEc:erg:wpaper:9505
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