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City Skew and Homeowner Subsidy Removal

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  • Alexander Daminger
  • Kristof Dascher

Abstract

Manycountriessubsidizehomeownership, andGermanyisnoexception. However, for an interlude of 12 years Germany also paused its subsidy. Over these twelveyearsmostofthecountry’s100largestcitiessawtheircentralcitypopulation expand. We explore subsidy removal’s role in center revival. We assemble a large data set of population strata for a ?ne partition of city rings. Then we exploit the design of the subsidy (which bene?ted more a?ordable places more, and also which never bene?ted the young) to identify its e?ects on urban spatial structure. We will ?nd that homeowner subsidy removal has strongly driven the skew of the distribution of commuting distance up. In doing so subsidy removal has also, so we will suggest, contributed to strong recent growth in both, urban rent and female labor force participation.

Suggested Citation

  • Alexander Daminger & Kristof Dascher, 2020. "City Skew and Homeowner Subsidy Removal," Working Papers 195, Bavarian Graduate Program in Economics (BGPE).
    • Handle: RePEc:bav:wpaper:195_damingerdascher
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    Cited by:

    1. Alexander Daminger, 2023. "Homeowner Subsidies and Suburban Living: Empirical Evidence from a Subsidy Repeal," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 79(2), pages 111-145.
    2. Alexander Daminger, 2021. "Subsidies to Homeownership and Central City Rent," Working Papers 210, Bavarian Graduate Program in Economics (BGPE).
    3. Stefanie Braun, 2021. "Effects of Preferential Tax Treatment on German Homeownership," Working Papers 209, Bavarian Graduate Program in Economics (BGPE).

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    More about this item

    Keywords

    Commuting Distribution; Skewness; Homeownership Subsidy; Reurbanization;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

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