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Can Risk Averse Private Entrepreneurs Efficiently Produce Low Income Housing?

Author

Listed:
  • Paul MAKDISSI

    (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)

Abstract

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'économique de l'École de gestion à l'Université de Sherbrooke.
    • Handle: RePEc:shr:wpaper:04-06
    as

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    File URL: http://gredi.recherche.usherbrooke.ca/wpapers/04_06_pm.pdf
    File Function: First version, 2004
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Low Income Housing; Risk Aversion; Rent Control; Public Good;
    All these keywords.

    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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