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Equilibrium effects of subsidizing housing supply

CEntre Pour la Recherche ÉconoMique et ses APplications - PARIS - 2020

This project explores the efficiency and distributive effects of subsidizing housing supply in tight housing markets. Using administrative data on housing production, investors’ tax returns, and institutional variation in housing supply subsidies over time and across locations, it quantifies a spatial equilibrium model in which optimal tax expenditures trade off distributive and economic efficiency impacts of subsidized housing supply.