Otalora, Usategui Díaz de; María, José - Departamento de Fundamentos del Análisis Económico … - 2008
In this paper it is shown that an ad valorem housing subsidy set by a central regulator (or a raise in the ad valorem housing subsidy rate) may reduce the number of houses built in the market and increase the price paid by the buyers of houses. The analysis considers a situation where there is...