IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/3884.html
   My bibliography  Save this paper

Rental choice and housing policy realignment in transition : post-privatization challenges in the Europe and Central Asia region

Author

Listed:
  • Duebel, Hans-Joachim
  • Brzeski, W. Jan
  • Hamilton, Ellen

Abstract

Massive privatizations of housing in Europe and Central Asia transition countries have significantly reduced rental tenure choice, threatening to impede residential mobility. Policymakers are intensifying their search for adequate policy responses aimed at broadening tenure choice for more household categories through effective rental housing alternatives in the social and private sectors. While the social alternative requires substantial and well-balanced subsidies, the private alternative will not grow unless rent, management, and tax reforms are boldly implemented and housing privatization truly completed.

Suggested Citation

  • Duebel, Hans-Joachim & Brzeski, W. Jan & Hamilton, Ellen, 2006. "Rental choice and housing policy realignment in transition : post-privatization challenges in the Europe and Central Asia region," Policy Research Working Paper Series 3884, The World Bank.
    • Handle: RePEc:wbk:wbrwps:3884
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2006/04/14/000016406_20060414123303/Rendered/PDF/wps3884.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Simeon Djankov & Rafael La Porta & Florencio Lopez-de-Silane & Andrei Shleifer, 2002. "Courts: the Lex Mundi Project," NBER Working Papers 8890, National Bureau of Economic Research, Inc.
    2. S.Rama Rao, 2000. "Municipal Affairs in India: A Critical Appraisal of Selected Issues," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0008, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    3. Yannis M. Ioannides & Jeffrey E. Zabel, 2003. "Neighbourhood effects and housing demand," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(5), pages 563-584.
    4. King, Mervyn A., 1980. "An econometric model of tenure choice and demand for housing as a joint decision," Journal of Public Economics, Elsevier, vol. 14(2), pages 137-159, October.
    5. Arcelus, Francisco & Meltzer, Allan H, 1973. "The Markets for Housing and Housing Services," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 5(1), pages 78-99, Part I Fe.
    6. Anna M. Hardman & Yannis M. Ioannides, 1999. "Residential Mobility and the Housing Market in a Two‐sector Neoclassical Growth Model," Scandinavian Journal of Economics, Wiley Blackwell, vol. 101(2), pages 315-335, June.
    7. Martin Lux, 2001. "Social Housing In The Czech Republic, Poland And Slovakia," International Journal of Housing Policy, Taylor & Francis Journals, vol. 1(2), pages 189-209.
    8. Fidrmuc, Jan, 2004. "Migration and regional adjustment to asymmetric shocks in transition economies," Journal of Comparative Economics, Elsevier, vol. 32(2), pages 230-247, June.
    9. Richard Arnott, 1997. "Rent Control," Boston College Working Papers in Economics 391., Boston College Department of Economics.
    10. Goodman, Allen C. & Kawai, Masahiro, 1984. "Estimation and policy implications of rental housing demand," Journal of Urban Economics, Elsevier, vol. 16(1), pages 76-90, July.
    11. Bertaud, Alain & Renaud, Bertrand, 1995. "Cities without land markets : location and land use in the socialist city," Policy Research Working Paper Series 1477, The World Bank.
    12. Lawrence D. Jones, 1989. "Current Wealth and Tenure Choice," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 17(1), pages 17-40, March.
    13. John F. Kain & John M. Quigley, 1975. "Housing Markets and Racial Discrimination: A Microeconomic Analysis," NBER Books, National Bureau of Economic Research, Inc, number kain75-1, July.
    14. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762.
    15. M C Deurloo & F M Dieleman & W A V Clark, 1987. "Tenure Choice in the Dutch Housing Market," Environment and Planning A, , vol. 19(6), pages 763-781, June.
    16. de Leeuw, Frank & Ekanem, Nkanta F, 1971. "The Supply of Rental Housing," American Economic Review, American Economic Association, vol. 61(5), pages 806-817, December.
    17. Peter Linneman & Susan Wachter, 1989. "The Impacts of Borrowing Constraints on Homeownership," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 17(4), pages 389-402, December.
    18. Svarer, Michael & Rosholm, Michael & Munch, Jakob Roland, 2005. "Rent control and unemployment duration," Journal of Public Economics, Elsevier, vol. 89(11-12), pages 2165-2181, December.
    19. Olsen, Edgar O, 1969. "A Competitive Theory of the Housing Market," American Economic Review, American Economic Association, vol. 59(4), pages 612-622, Part I Se.
    20. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    21. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    22. Coulson, N. Edward, 1999. "Why Are Hispanic- and Asian-American Homeownership Rates So Low?: Immigration and Other Factors," Journal of Urban Economics, Elsevier, vol. 45(2), pages 209-227, March.
    23. Early, Dirk W., 2000. "Rent Control, Rental Housing Supply, and the Distribution of Tenant Benefits," Journal of Urban Economics, Elsevier, vol. 48(2), pages 185-204, September.
    24. Boehm, Thomas P & Herzog, Henry W, Jr & Schlottmann, Alan M, 1991. "Intra-urban Mobility, Migration, and Tenure Choice," The Review of Economics and Statistics, MIT Press, vol. 73(1), pages 59-68, February.
    25. Malpezzi, Stephen & Mayo, Stephen K., 1987. "User cost and housing tenure in developing countries," Journal of Development Economics, Elsevier, vol. 25(1), pages 197-220, February.
    26. Mervyn A. King, 1980. "An Econometric Model of Tenure Choice and Demand for Housing as a Joint Decision," NBER Chapters, in: Econometric Studies in Public Finance, pages 137-159, National Bureau of Economic Research, Inc.
    27. Cristina Barceló, 2003. "Housing Tenure and Labour Mobility: A Comparison Across European Countries," Working Papers wp2003_0302, CEMFI.
    28. Henderson, J. Vernon & Ioannides, Yannis M., 1989. "Dynamic aspects of consumer decisions in housing markets," Journal of Urban Economics, Elsevier, vol. 26(2), pages 212-230, September.
    29. Rosen, Harvey S & Rosen, Kenneth T, 1980. "Federal Taxes and Homeownership: Evidence from Time Series," Journal of Political Economy, University of Chicago Press, vol. 88(1), pages 59-75, February.
    30. Chiuri, Maria Concetta & Jappelli, Tullio, 2003. "Financial market imperfections and home ownership: A comparative study," European Economic Review, Elsevier, vol. 47(5), pages 857-875, October.
    31. Donald R. Haurin & Patric H. Hendershott & Susan M. Wachter, 1996. "Borrowing Constraints and the Tenure Choice of Young Households," NBER Working Papers 5630, National Bureau of Economic Research, Inc.
    32. Rothenberg, Jerome & Galster, George C. & Butler, Richard V. & Pitkin, John R., 1991. "The Maze of Urban Housing Markets," University of Chicago Press Economics Books, University of Chicago Press, number 9780226729510, September.
    33. Arcelus, Francisco & Meltzer, Allan H, 1973. "The Markets for Housing and Housing Services: Reply," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 5(4), pages 973-978, November.
    34. Titman, Sheridan D, 1982. "The Effects of Anticipated Inflation on Housing Market Equilibrium," Journal of Finance, American Finance Association, vol. 37(3), pages 827-842, June.
    35. Deichmann, Uwe & Henderson, Vernon, 2000. "Urban and regional dynamics in Poland," Policy Research Working Paper Series 2457, The World Bank.
    36. Weinberg, Daniel H. & Friedman, Joseph & Mayo, Stephen K., 1981. "Intraurban residential mobility: The role of transactions costs, market imperfections, and household disequilibrium," Journal of Urban Economics, Elsevier, vol. 9(3), pages 332-348, May.
    37. Fidrmuc, Jan, 2004. "Migration and regional adjustment to asymmetric shocks in transition economies," Journal of Comparative Economics, Elsevier, vol. 32(2), pages 230-247, June.
    38. Hardman, Anna M & Ioannides, Yannis M, 1999. " Residential Mobility and the Housing Market in a Two-Sector Neoclassical Growth Model," Scandinavian Journal of Economics, Wiley Blackwell, vol. 101(2), pages 315-335, June.
    39. Martin Lux, 2001. "Social Housing In The Czech Republic, Poland And Slovakia," European Journal of Housing Policy, Taylor and Francis Journals, vol. 1(2), pages 189-209.
    40. JoAzsef Hegedüs & Iván Tosics & Stephen K. Mayo, 1996. "Transition Of The Housing Sector In The East Central European Countries," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 8(2), pages 101-136, July.
    41. Jones Lawrence D., 1995. "Testing the Central Prediction of Housing Tenure Transition Models," Journal of Urban Economics, Elsevier, vol. 38(1), pages 50-73, July.
    42. Smith, Lawrence B & Rosen, Kenneth T & Fallis, George, 1988. "Recent Developments in Economic Models of Housing Markets," Journal of Economic Literature, American Economic Association, vol. 26(1), pages 29-64, March.
    43. Narwold, Andrew, 1992. "The distribution of the benefits of tax arbitrage in the housing market," Journal of Urban Economics, Elsevier, vol. 32(3), pages 367-376, November.
    44. Mayo, Stephen & Sheppard, Stephen, 1996. "Housing Supply under Rapid Economic Growth and Varying Regulatory Stringency: An International Comparison," Journal of Housing Economics, Elsevier, vol. 5(3), pages 274-289, September.
    45. Painter, Gary & Redfearn, Christian L, 2002. "The Role of Interest Rates in Influencing Long-Run Homeownership Rates," The Journal of Real Estate Finance and Economics, Springer, vol. 25(2-3), pages 243-267, Sept.-Dec.
    46. Keith R. Ihlanfeldt, 1982. "Income Elasticities of Demand for Rental Housing: Additional Evidence," Urban Studies, Urban Studies Journal Limited, vol. 19(1), pages 65-69, February.
    47. Olsen, Edgar O, 1972. "An Econometric Analysis of Rent Control," Journal of Political Economy, University of Chicago Press, vol. 80(6), pages 1081-1100, Nov.-Dec..
    48. Mayo, Stephen K., 1981. "Theory and estimation in the economics of housing demand," Journal of Urban Economics, Elsevier, vol. 10(1), pages 95-116, July.
    49. Plaut, Steven E., 1987. "The timing of housing tenure transition," Journal of Urban Economics, Elsevier, vol. 21(3), pages 312-322, May.
    50. Hansen, Julia L. & Formby, John P. & Smith, W. James, 1996. "The Income Elasticity of Demand for Housing: Evidence from Concentration Curves," Journal of Urban Economics, Elsevier, vol. 39(2), pages 173-192, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Antje Hildebrandt & Reiner Martin & Katharina Steiner & Karin Wagner, 2012. "Residential Property Markets in CESEE EU Member States," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 8-30.
    2. Broulíková, Hana M. & Huber, Peter & Montag, Josef & Sunega, Petr, 2020. "Homeownership, mobility, and unemployment: Evidence from housing privatization," Journal of Housing Economics, Elsevier, vol. 50(C).
    3. Broulíková Hana M. & Montag Josef, 2020. "Housing Privatization in Transition Countries: Institutional Features and Outcomes," Review of Economic Perspectives, Sciendo, vol. 20(1), pages 51-71, March.
    4. Antje Hildebrandt & Duy T. Huynh-Olesen & Katharina Steiner & Karin Wagner, 2013. "Residential Property Prices in Central, Eastern and Southeastern European Countries," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 2, pages 52-76.
    5. World Bank, 2007. "Albania Urban Sector Review," World Bank Publications - Reports 19622, The World Bank Group.
    6. Anna Baranowska, 2011. "Trash contracts? The impact of temporary employment on leaving the parental home in Poland," Working Papers 44, Institute of Statistics and Demography, Warsaw School of Economics.
    7. Hegedüs, József & Somogyi, Eszter & Augustyniak, Hanna & Csizmady, Adrienne & Laszek, Jacek & Olszewski, Krzysztof, 2019. "Posztszocialista lakásrendszerek Magyarországon és Lengyelországban [Post-socialist housing systems in Hungary and Poland]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 980-1004.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Isaac F. Megbolugbe & Peter D. Linneman, 1993. "Home Ownership," Urban Studies, Urban Studies Journal Limited, vol. 30(4-5), pages 659-682, May.
    2. Ashot Tsharakyan & Petr Zemčík, 2016. "Did rent deregulation alter tenure choice decisions in the Czech Republic?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 24(2), pages 335-360, April.
    3. Haurin, Donald R. & Gill, H. Leroy, 2002. "The Impact of Transaction Costs and the Expected Length of Stay on Homeownership," Journal of Urban Economics, Elsevier, vol. 51(3), pages 563-584, May.
    4. Scholten, Ulrich, 1999. "Die Förderung von Wohneigentum," Beiträge zur Finanzwissenschaft, Mohr Siebeck, Tübingen, edition 1, volume 8, number urn:isbn:9783161472343, September.
    5. Rainer Schulz & Martin Wersing & Axel Werwatz, 2014. "Renting versus Owning and the Role of Human Capital: Evidence from Germany," The Journal of Real Estate Finance and Economics, Springer, vol. 48(4), pages 754-788, May.
    6. Malpezzi, Stephen, 2001. "The Contributions of Stephen K. Mayo to Housing and Urban Economics," Journal of Housing Economics, Elsevier, vol. 10(2), pages 72-108, June.
    7. Hans van Fulpen, 1988. "An Analysis of the Housing Market in the Netherlands," Urban Studies, Urban Studies Journal Limited, vol. 25(3), pages 190-203, June.
    8. Raul-Tomas Mora-Garcia & Maria-Francisca Cespedes-Lopez & V. Raul Perez-Sanchez & Pablo Marti & Juan-Carlos Perez-Sanchez, 2019. "Determinants of the Price of Housing in the Province of Alicante (Spain): Analysis Using Quantile Regression," Sustainability, MDPI, vol. 11(2), pages 1-33, January.
    9. Daniel K. Fetter, 2013. "How Do Mortgage Subsidies Affect Home Ownership? Evidence from the Mid-century GI Bills," American Economic Journal: Economic Policy, American Economic Association, vol. 5(2), pages 111-147, May.
    10. Juan Mora-Sanguinetti, 2012. "Is judicial inefficacy increasing the weight of the house property market in Spain? Evidence at the local level," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 3(3), pages 339-365, September.
    11. Miguel Angel López García, 1992. "Algunos aspectos de la economía y la política de la vivienda," Investigaciones Economicas, Fundación SEPI, vol. 16(1), pages 3-41, January.
    12. François Ortalo-Magné & Sven Rady, 2006. "Housing Market Dynamics: On the Contribution of Income Shocks and Credit Constraints ," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 73(2), pages 459-485.
    13. G. Donald Jud & John D. Benjamin & G. Stacy Sirmans, 1996. "What Do We Know about Apartments and Their Markets?," Journal of Real Estate Research, American Real Estate Society, vol. 11(3), pages 243-258.
    14. Carter, Steven, 2011. "Housing tenure choice and the dual income household," Journal of Housing Economics, Elsevier, vol. 20(3), pages 159-170, September.
    15. Zabel, Jeffrey E., 2004. "The demand for housing services," Journal of Housing Economics, Elsevier, vol. 13(1), pages 16-35, March.
    16. Steven C. Bourassa & Donald R. Haurin, 2017. "A Dynamic Housing Affordability Index," International Real Estate Review, Global Social Science Institute, vol. 20(3), pages 251-286.
    17. Ermisch, John F. & Jenkins, Stephen P., 1999. "Retirement and housing adjustment in later life: evidence from the British Household Panel Survey," Labour Economics, Elsevier, vol. 6(2), pages 311-333, June.
    18. Piyush Tiwari & Kirit Parikh & Jyoti Parikh, 1999. "Effective Housing Demand in Mumbai (Bombay) Metropolitan Region," Urban Studies, Urban Studies Journal Limited, vol. 36(10), pages 1783-1809, September.
    19. Youqin Huang & William A. V. Clark, 2002. "Housing Tenure Choice in Transitional Urban China: A Multilevel Analysis," Urban Studies, Urban Studies Journal Limited, vol. 39(1), pages 7-32, January.
    20. Arnab Bhattacharjee & Eduardo Castro & Taps Maiti & João Marques, 2014. "Endogenous spatial structure and delineation of submarkets: A new framework with application to housing markets," SEEC Discussion Papers 1403, Spatial Economics and Econometrics Centre, Heriot Watt University.

    More about this item

    Keywords

    Urban Housing; Housing&Human Habitats; Municipal Financial Management; Public Sector Management and Reform; Non Bank Financial Institutions;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:3884. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.