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- Title
The economic rationale for government intervention in housing: a comment.
- Authors
Mayes, David
- Abstract
In an article entitled 'The economic rationale for government intervention in housing' in the Summer 1979 issue of this journal, Christine True argues strongly for the continued existence of a substantial provision of public sector housing at subsidised rents. She adduces three sources of justification for this argument, allocative efficiency, the distribution of income and wealth and lastly macroeconomic stabilisation. The purpose of this note is to show that while there is a good argument for the provision of public sector housing, whether subsidised or not, the three sources of justification set out are substantially weaker than is suggested. In particular Section 1 shows that there is considerable allocative inefficiency in the provision of public sector housing, while Section 2 explains that the distributional barriers to finance for private house purchase are seriously misconceived. Finally in Section 3 the notion of stabilisation as a justification is rejected. Section 4 contains concluding comments.
- Subjects
PUBLIC housing; PUBLIC sector; HOUSING subsidies; RENT subsidies; INCOME inequality; WEALTH
- Publication
Social Policy & Administration, 1980, Vol 14, Issue 1, p54
- ISSN
0144-5596
- Publication type
Editorial
- DOI
10.1111/j.1467-9515.1980.tb00144.x