Year: 1988
Author: Schellhaaß, Horst-Manfred
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 108 (1988), Iss. 3 : pp. 405–421
Abstract
This paper presents a system of pareto-superior conditions for the transition from construction subsidies to housing allowances which make better of all involved parties of the tenants, landlords, and government. The main problem is the emergence of windfall profits during the transition. A modified windfall profit tax will as well reduce rent seeking activities as establish social symmetry between landlords and tenants. The transition mechanism reflects what is considered as the essence of the transition problem from a political as well as an economic perspective: who is to bear the consequences of the "overhang" of sunk costs and what is the price for a political majority in favor of a deregulation of the housing market.
Journal Article Details
Publisher Name: Global Science Press
Language: Multiple languages
DOI: https://doi.org/10.3790/schm.108.3.405
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 108 (1988), Iss. 3 : pp. 405–421
Published online: 1988-03
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 17