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Can Risk Averse Private Entrepreneurs Efficiently Produce Low Income Housing?



    () (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)


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.

Suggested Citation

  • Paul MAKDISSI & Quentin WODON, 2004. "Can Risk Averse Private Entrepreneurs Efficiently Produce Low Income Housing?," Cahiers de recherche 04-06, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
  • Handle: RePEc:shr:wpaper:04-06

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    File Function: First version, 2004
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    References listed on IDEAS

    1. Miller, Robert A, 1984. "Job Matching and Occupational Choice," Journal of Political Economy, University of Chicago Press, vol. 92(6), pages 1086-1120, December.
    2. McCall, Brian P., 1991. "A dynamic model of occupational choice," Journal of Economic Dynamics and Control, Elsevier, vol. 15(2), pages 387-408, April.
    3. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-990, October.
    4. 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.
    5. 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.
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    More about this item


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

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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