Housing Allowance and Rents: Evidence from a Stepwise Subsidy Scheme

Essi Eerola and Teemu Lyytikäinen

Scandinavian Journal of Economics, 2021, vol. 123, issue 1, 84-109

Abstract: In this paper, we study 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 on the year of construction of the building causes economically and statistically significant discontinuities in the amounts of housing allowances. However, our results show that there are no discontinuities in the rents paid by the recipients of housing allowance at these cut‐offs. Instead, differences in the amounts of housing allowance are translated roughly one‐to‐one into differences in the rent net of housing allowance.

Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://doi.org/10.1111/sjoe.12396

Related works:
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)
Working Paper: Housing allowance and rents: Evidence from a stepwise subsidy scheme (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:scandj:v:123:y:2021:i:1:p:84-109

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0347-0520

Access Statistics for this article

Scandinavian Journal of Economics is currently edited by Richard Friberg, Matti Liski and Kjetil Storesletten

More articles in Scandinavian Journal of Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().