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City Skew and Homeowner Subsidy Removal

Alexander Daminger () and Kristof Dascher ()

No 195, Working Papers from Bavarian Graduate Program in Economics (BGPE)

Abstract: Manycountriessubsidizehomeownership, andGermanyisnoexception. However, for an interlude of 12 years Germany also paused its subsidy. Over these twelveyearsmostofthecountry’s100largestcitiessawtheircentralcitypopulation expand. We explore subsidy removal’s role in center revival. We assemble a large data set of population strata for a ?ne partition of city rings. Then we exploit the design of the subsidy (which bene?ted more a?ordable places more, and also which never bene?ted the young) to identify its e?ects on urban spatial structure. We will ?nd that homeowner subsidy removal has strongly driven the skew of the distribution of commuting distance up. In doing so subsidy removal has also, so we will suggest, contributed to strong recent growth in both, urban rent and female labor force participation.

Keywords: Commuting Distribution; Skewness; Homeownership Subsidy; Reurbanization (search for similar items in EconPapers)
JEL-codes: D72 R12 R52 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2020-05
New Economics Papers: this item is included in nep-eur and nep-ure
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