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Homeowner Subsidy Repeal and Housing Recentralization

Author

Listed:
  • Alexander Daminger
  • Kristof Dascher

Abstract

Subsidizing homeownership decentralizes cities, as Muth (1967) suggested over half a century ago. This article focuses on the related question of whether repealing a homeownership subsidy recentralizes cities. This question is relevant today, given the ubiquity of homeownership subsidies. We provide a first quasi-experimental test of a subsidy repeal’s spatial effects by examining Germany’s 2005 homeownership subsidy reform. We find that repealing the subsidy contributed to recentralizing Germany’s cities. Since recentralization helps abate carbon dioxide emissions, repealing a homeownership subsidy also helps mitigate climate change.

Suggested Citation

  • Alexander Daminger & Kristof Dascher, 2023. "Homeowner Subsidy Repeal and Housing Recentralization," Land Economics, University of Wisconsin Press, vol. 99(2), pages 283-301.
    • Handle: RePEc:uwp:landec:v:99:y:2023:i:2:p:283-301
    Note: DOI: https://doi.org/10.3368/le.081821-0095R
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    File URL: http://le.uwpress.org/cgi/reprint/99/2/283
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    Cited by:

    1. Konstantin A. Kholodilin, 2025. "The Impact of Governmental Regulations on Housing Market: Findings of a Meta-Study of Empirical Literature," Discussion Papers of DIW Berlin 2113, DIW Berlin, German Institute for Economic Research.

    More about this item

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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