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Can Risk Averse Private Entrepreneurs Efficiently Produce Low Income Housing?

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  • Paul MAKDISSI

    ()
    (Département d’´economique and CEREF, Universit´e de Sherbrooke, 2550 boulevard de l’Universit´e, Sherbrooke, Qu´ebec, Canada, J1K 2R1)

  • Quentin WODON

    ()
    (LCSPR, World Bank, 1818 H Street, NW, Washington, DC 20433, USA)

Abstract

Under rent ceilings and quality doors for low income housing units, imperfect information on the ability of tenants to pay their rent may lead the decentralized production of housing units by risk averse private entrepreneurs to be inefficient. A coordinating agency and/or subsidies for new tenants would help to produce more housing, thereby increasing the profits for landlords while also enabling more low income households to find housing.

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File URL: http://gredi.recherche.usherbrooke.ca/wpapers/04_06_pm.pdf
File Function: First version, 2004
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Bibliographic Info

Paper provided by Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke in its series Cahiers de recherche with number 04-06.

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Length: 8 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:shr:wpaper:04-06

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Keywords: Low Income Housing; Risk Aversion; Rent Control; Public Good;

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  1. McCall, Brian P., 1991. "A dynamic model of occupational choice," Journal of Economic Dynamics and Control, Elsevier, vol. 15(2), pages 387-408, April.
  2. Miller, Robert A, 1984. "Job Matching and Occupational Choice," Journal of Political Economy, University of Chicago Press, vol. 92(6), pages 1086-120, December.
  3. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-90, October.
  4. Ambrose, Brent W. & Thibodeau, Thomas G., 2004. "Have the GSE affordable housing goals increased the supply of mortgage credit?," Regional Science and Urban Economics, Elsevier, vol. 34(3), pages 263-273, May.
  5. Paul Makdissi & Cyril Téjédo, 2004. "Un effet externe positif à l'embauche. L'amélioration de la connaissance de la qualité des travailleurs," Revue économique, Presses de Sciences-Po, vol. 55(1), pages 93-102.
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