IDEAS home Printed from https://ideas.repec.org/p/diw/diwwpp/dp1727.html
   My bibliography  Save this paper

Measuring Stick-Style Housing Policies: a Multi-Country Longitudinal Database of Governmental Regulations

Author

Listed:
  • Konstantin A. Kholodilin

Abstract

This paper introduces a new international longitudinal database of governmental housing policies. The regulations are measured using binary variables based on a thorough analysis of the real-time country-specific legislation. Three major restrictive policies are considered: rent control, protection from restriction, and housing rationing. The database covers 47 countries and states between 1910 and 2018. This allows comparisons of regulation stringency across both time and space. The analysis reveals a surge of all restrictive policies in the first half of the 20th century. However, following World War II, the evolution of policies diverged: while rent control became more flexible or was phased out, tenure security stabilized at a high level or even increased, while housing rationing became used less frequently. An application of dynamic multivariate longitudinal clustering permits dividing the sample in two groups. One cluster comprises countries with more flexible rent control, stronger tenure security, and more housing rationing. It mostly includes European continental countries. Another cluster unifies countries with a more rigid rent control, weaker tenant protection, and rarely used housing rationing.

Suggested Citation

  • Konstantin A. Kholodilin, 2018. "Measuring Stick-Style Housing Policies: a Multi-Country Longitudinal Database of Governmental Regulations," Discussion Papers of DIW Berlin 1727, DIW Berlin, German Institute for Economic Research.
  • Handle: RePEc:diw:diwwpp:dp1727
    as

    Download full text from publisher

    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.580582.de/dp1727.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dan Andrews & Aida Caldera Sánchez & Åsa Johansson, 2011. "Housing Markets and Structural Policies in OECD Countries," OECD Economics Department Working Papers 836, OECD Publishing.
    2. Ballesteros, Marife M., 2001. "Benefits (and Losses) From Rent Control in the Philippines: An Empirical Study of Metro Manila," Discussion Papers DP 2001-23, Philippine Institute for Development Studies.
    3. Christian A. L. Hilber & Wouter Vermeulen, 2016. "The Impact of Supply Constraints on House Prices in England," Economic Journal, Royal Economic Society, vol. 126(591), pages 358-405, March.
    4. Steven N. S. Cheung, 1975. "Roofs Or Stars: The Stated Intents And Actual Effects Of A Rents Ordinance," Economic Inquiry, Western Economic Association International, vol. 13(1), pages 1-21, March.
    5. Genolini, Christophe & Alacoque, Xavier & Sentenac, Mariane & Arnaud, Catherine, 2015. "kml and kml3d: R Packages to Cluster Longitudinal Data," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 65(i04).
    6. 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.
    7. Kholodilin, Konstantin A & Mense, Andreas & Michelsen, Claus, 2017. "The market value of energy efficiency in buildings and the mode of tenure," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 54(14), pages 3218-3238.
    8. Malpezzi, S. & Tipple, A.G. & Willis, K.G., 1990. "Costs And Benefits Of Rent Control: A Case Study In Kumasi, Ghana," World Bank - Discussion Papers 74, World Bank.
    9. Bettendorf, Leon & Buyst, Erik, 1997. "Rent Control and Virtual Prices: A Case Study for Interwar Belgium," The Journal of Economic History, Cambridge University Press, vol. 57(3), pages 654-673, September.
    10. Francesco Figari & Alari Paulus & Holly Sutherland & Panos Tsakloglou & Gerlinde Verbist & Francesca Zantomio, 2017. "Removing Homeownership Bias in Taxation: The Distributional Effects of Including Net Imputed Rent in Taxable Income," Fiscal Studies, Institute for Fiscal Studies, vol. 38, pages 525-557, December.
    11. Hans Lind, 2001. "Rent Regulation: A Conceptual And Comparative Analysis," European Journal of Housing Policy, Taylor and Francis Journals, vol. 1(1), pages 41-57.
    12. Cheung, Steven N S, 1975. "Roofs or Stars: The Stated Intents and Actual Effects of a Rents Ordinance," Economic Inquiry, Western Economic Association International, vol. 13(1), pages 1-21, March.
    13. Brueckner, Jan K., 2011. "Lectures on Urban Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262016362, December.
    14. Konstantin A. Kholodilin, 2017. "Housing Policy of Non-Bolshevik Governments During the Russian Civil War," HSE Working papers WP BRP 151/HUM/2017, National Research University Higher School of Economics.
    15. Ballesteros, Marife M. & Magtibay, Jasmine E. & Ramos, Tatum, 2016. "Rent Control in the Philippines: An Update," Discussion Papers DP 2016-40, Philippine Institute for Development Studies.
    16. Hans Lind, 2001. "Rent Regulation: A Conceptual And Comparative Analysis," International Journal of Housing Policy, Taylor & Francis Journals, vol. 1(1), pages 41-57.
    17. Shereen Attia, 2016. "Rent Control Dilemma Comeback in Egypt’s Governance: A Hedonic Approach," Working Papers 979, Economic Research Forum, revised Feb 2016.
    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. Weber, Jan Philip & Lee, Gabriel, . "On the Measure of Private Rental Market Regulation Index and its Effect on Housing Rents: Cross Country Evidence," Beiträge zur Immobilienwirtschaft, University of Regensburg, Department of Economics, number 21, August.
    2. Orsetta Causa & Nicolas Woloszko & David Leite, 2020. "Housing, Wealth Accumulation and Wealth Distribution: Evidence and Stylized Facts," LWS Working papers 30, LIS Cross-National Data Center in Luxembourg.
    3. Konstantin A. Kholodilin & Sebastian Kohl, 2020. "Does Social Policy through Rent Controls Inhibit New Construction? Some Answers from Long-Run Historical Evidence," Discussion Papers of DIW Berlin 1839, DIW Berlin, German Institute for Economic Research.
    4. Guillaume Claveres & Thomas Y. Mathä & Giuseppe Pulina & Jan Stráský & Nicolas Woloszko & Michael Ziegelmeyer, 2020. "Housing and inequality: The case of Luxembourg and its cross-border workers," BCL working papers 144, Central Bank of Luxembourg.
    5. Ligia Topan & Miguel Jerez & Sonia Sotoca, 2020. "The impact of oil prices on products groups inflation: is the effect asymmetric?," Documentos de Trabajo del ICAE 2020-02, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico.
    6. P. Reusens & Ch. Warisse, 2018. "House prices and economic growth in Belgium," Economic Review, National Bank of Belgium, issue iv, pages 81-106, december.
    7. Friedrich Breyer & Nicole Hoffmeister-Kraut & Matthias Wrede & Harald Simons & Lars Vandrei & Theresia Theurl & Ralph Henger & Konstantin Kholodilin & Sebastian Kohl, 2018. "Failure of social housing policy: How to create affordable housing?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 71(21), pages 03-30, November.
    8. Maria Chiara Cavalleri & Boris Cournède & Volker Ziemann, 2019. "Housing markets and macroeconomic risks," OECD Economics Department Working Papers 1555, OECD Publishing.
    9. Konstantin Kholodilin & Sebastian Kohl, 2019. "Verdrängung oder Sozialpolitik? Einfluss von Regulierungen auf die Wohneigentumsquote [Social Policy or Crowding-out? The Effect of Private-tenancy Regulation on Homeownership]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 99(5), pages 363-366, May.

    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. Rik de Boer & Rosamaria Bitetti, 2014. "A Revival of the Private Rental Sector of the Housing Market?: Lessons from Germany, Finland, the Czech Republic and the Netherlands," OECD Economics Department Working Papers 1170, OECD Publishing.
    2. Aida Caldera Sánchez & Morten Rasmussen & Oliver Röhn, 2016. "Economic Resilience: What Role for Policies?," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 7(02), pages 1-44, June.
    3. Konstantin Kholodilin, 2020. "Long-Term, Multicountry Perspective on Rental Market Regulations," Housing Policy Debate, Taylor & Francis Journals, vol. 30(6), pages 994-1015, November.
    4. Müge Adalet McGowan & Dan Andrews, 2015. "Skill Mismatch and Public Policy in OECD Countries," OECD Economics Department Working Papers 1210, OECD Publishing.
    5. Weber, Jan Philip & Lee, Gabriel, . "On the Measure of Private Rental Market Regulation Index and its Effect on Housing Rents: Cross Country Evidence," Beiträge zur Immobilienwirtschaft, University of Regensburg, Department of Economics, number 21, August.
    6. Coda Moscarola, Flavia & Colombino, Ugo & Figari, Francesco & Locatelli, Marilena, 2020. "Shifting taxes away from labour enhances equity and fiscal efficiency," Journal of Policy Modeling, Elsevier, vol. 42(2), pages 367-384.
    7. 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.
    8. Jörg Paetzold & Markus Tiefenbacher, 2018. "Distributional and revenue effects of a tax shift from labor to property," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 25(5), pages 1215-1251, October.
    9. Brandts, Jordi & Busom, Isabel & Lopez-Mayan, Cristina & Panadés, Judith, 2022. "Dispelling misconceptions about economics," Journal of Economic Psychology, Elsevier, vol. 88(C).
    10. Lok Sang Ho, 1992. "Rent Control: Its Rationale and Effects," Urban Studies, Urban Studies Journal Limited, vol. 29(7), pages 1183-1189, October.
    11. O’Toole, Conor & Martinez-Cillero, Maria & Ahrens, Achim, 2021. "Price regulation, inflation, and nominal rigidity in housing rents," Journal of Housing Economics, Elsevier, vol. 52(C).
    12. Yung Yau & Daniel Ho & Kwong Chau, 2008. "Determinants of the Safety Performance of Private Multi-storey Residential Buildings in Hong Kong," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 89(3), pages 501-521, December.
    13. Enström Öst, Cecilia & Söderberg, Bo & Wilhelmsson, Mats, 2014. "Household allocation and spatial distribution in a market under (“soft”) rent control," Journal of Policy Modeling, Elsevier, vol. 36(2), pages 353-372.
    14. Mr. Tigran Poghosyan, 2016. "Can Property Taxes Reduce House Price Volatility? Evidence from U.S. Regions," IMF Working Papers 2016/216, International Monetary Fund.
    15. Coffey, Cathal & Hogan, Paul J. & McQuinn, Kieran & O'Toole, Conor & Slaymaker, Rachel, 2022. "Rental inflation and stabilisation policies: international evidence and the Irish experience," Research Series, Economic and Social Research Institute (ESRI), number RS136, June.
    16. Salvatore Bimonte & Arsenio Stabile, 2019. "The Effect of Growth and Corruption on Soil Sealing in Italy: A Regional Environmental Kuznets Curve Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(4), pages 1497-1518, December.
    17. Konstantin A. Kholodilin, 2022. "Rent Control Effects through the Lens of Empirical Research: An almost Complete Review of the Literature," Discussion Papers of DIW Berlin 2026, DIW Berlin, German Institute for Economic Research.
    18. Luís Mendes, 2022. "The Dysfunctional Rental Market in Portugal: A Policy Review," Land, MDPI, vol. 11(4), pages 1-17, April.
    19. Bimonte, Salvatore & Stabile, Arsenio, 2015. "Local taxation and urban development. Testing for the side-effects of the Italian property tax," Ecological Economics, Elsevier, vol. 120(C), pages 100-107.
    20. Sónia Alves & Alda Botelho Azevedo & Luís Mendes & Katielle Silva, 2023. "Urban Regeneration, Rent Regulation and the Private Rental Sector in Portugal: A Case Study on Inner-City Lisbon’s Social Sustainability," Land, MDPI, vol. 12(8), pages 1-20, August.

    More about this item

    Keywords

    regulation indices; rent control; tenure security; housing rationing;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

    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:diw:diwwpp:dp1727. 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: Bibliothek (email available below). General contact details of provider: https://edirc.repec.org/data/diwbede.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.