The Price and Allocation Effects of Targeted Mandates: Evidence from Lead Hazards
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Ludovica Gazze: University of Warwick
The Warwick Economics Research Paper Series (TWERPS) from University of Warwick, Department of Economics
Several states require owners to mitigate lead hazards in old houses with children present. I estimate the mandates’ effects on housing markets. My empirical strategy exploits differences by state, year, and housing vintage. The mandates decrease the prices of old houses by 7.1 percent, acting as a large tax on owners. Moreover, families with children become 11.3 percent less likely to live in old houses. Increases in rents for family-friendly houses suggest that the mandates have important distributional consequences. These findings are relevant for evaluating similar mandates such as healthy homes standards. Mandates ; Health Hazards ; Housing Quality JEL codes: I18 ; Q52 ; R21
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