Housing Allowance and Rents: Evidence from a Stepwise Subsidy Scheme

Essi Eerola and Teemu Lyytikäinen

SERC Discussion Papers from Centre for Economic Performance, LSE

Abstract: This paper studies the effect of housing demand subsidies on rents using discontinuities in the Finnish housing allowance system as a quasi-experimental setting. The stepwise dependence of housing allowance on the floor area of the dwelling and the year of construction of the building causes economically and statistically significant discontinuities in the amount of housing allowances. However, our results show that there are no discontinuities in rents of the recipient households at these cut-offs. Instead, differences in the amount of the housing allowance are translated roughly one-to-one into differences in the rent net of housing allowance.

Keywords: housing demand subsidies; housing allowance; incidence; rents (search for similar items in EconPapers)
JEL-codes: H22 (search for similar items in EconPapers)
Date: 2017-08
New Economics Papers: this item is included in nep-eur, nep-pbe and nep-ure
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Citations: View citations in EconPapers (6)

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http://cep.lse.ac.uk/pubs/download/sercdp0220.pdf (application/pdf)

Related works:
Journal Article: Housing Allowance and Rents: Evidence from a Stepwise Subsidy Scheme (2021)
Working Paper: Housing allowance and rents: evidence from a Stepwise Subsidy Scheme (2017)
Working Paper: Housing allowance and rents: Evidence from a stepwise subsidy scheme (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:sercdp:0220

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