Policy Coordination in an Oligopolistic Housing Market
Saracho de la Torre, Ana Isabel
Usategui Díaz de Otalora, José María
MetadataShow full item record
This paper analyzes the consequences of the interaction between two different levels of government (regulators) in the development of housing policy when their decisions determine the level of competition in the housing market. The analysis discusses the implications derived from a lack of coordination between a local regulator who controls the supply of land for housing development and a central regulator who decides on housing subsidies. The results suggest that lack of coordination has significant effects on prices and supply of houses, housing developers’ profits, and buyers’ surplus.