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Housing allowance and rents: evidence from a Stepwise Subsidy Scheme

Eerola, Essi and Lyytikainen, Teemu (2017) Housing allowance and rents: evidence from a Stepwise Subsidy Scheme. SERC Discussion Papers (SERCDP220). Spatial Economics Research Centre, London School of Economics and Political Science, London, UK.

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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

Item Type: Monograph (Discussion Paper)
Official URL: http://www.spatialeconomics.ac.uk/
Additional Information: © 2017 The Authors
Divisions: Spatial Economics Research Centre
Centre for Economic Performance
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HV Social pathology. Social and public welfare. Criminology
JEL classification: H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H22 - Incidence
Sets: Research centres and groups > Spatial Economics Research Centre
Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 29 Jan 2018 16:36
Last Modified: 05 Aug 2020 23:09
Funders: Economic and Social Research Council
URI: http://eprints.lse.ac.uk/id/eprint/86568

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