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Implications of homeownership policies on land prices: the case of a French experiment

Beaubrun-Diant, Kévin; Maury, Tristan-Pierre (2021), Implications of homeownership policies on land prices: the case of a French experiment, Economics Bulletin, 41, 3, p. 1256-1265

Type
Article accepté pour publication ou publié
Date
2021
Journal name
Economics Bulletin
Volume
41
Number
3
Publisher
Economics bulletin
Pages
1256-1265
Metadata
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Author(s)
Beaubrun-Diant, Kévin
Laboratoire d'Economie de Dauphine [LEDa]
Maury, Tristan-Pierre
ESSEC Business School
Research Center on Economics
Abstract (EN)
We propose to estimate the price effects of a positive housing demand shock on French real estate markets. The "Interest Free Loan" system is expected to support housing demand by first-time buyers. From 2009 to mid-2010, the amount of subsidies paid to first-time buyers was increased. We evaluate the effect of this new housing policy on land parcel prices using a new methodological approach of a hybrid of difference-in-difference and matching techniques, and exploiting geographical differences in the policy design to identify possible inflationary effects. We identify significant but transitory inflationary effects suggesting that land supply elasticity is low in France.
Subjects / Keywords
Land Prices; Inflation effects; Homeownership Policies
JEL
D23 - Organizational Behavior; Transaction Costs; Property Rights
G32 - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
R31 - Housing Supply and Markets