Thursday, September 20, 2012

Ed Glaeser weighs in

He advocates neutrality:


The government should neither encourage nor discourage home-ownership. Significant public interventions require evidence of significant market failure, and confidence that the costs of state action will be less than the costs of those market failures. These conditions are not met in the housing sector, whether we are contemplating pro or anti home-ownership policies. 
The case for home-ownership often begins with the view that home-owners are better citizens, who create social benefits by investing more in their communities and their governments. My work with Denise DiPasquale does find that home-owners are more likely to work to solve local problems, to vote and to know the names of local leaders. These effects reflect both home-owners' stake in their community and their tendency to live in one place longer. 


7 comments:

Urban Demographics said...

Richard, you put this trade-off between market failure costs and public intervention costs in a very straightforward way. Good. I'm trying to figure out, though, what evidence/data could attest a market failure in the housing sector? A significant percentage of households located in slums, lacking tenure security, etc. ?

Naresh Kumar said...

Hi, I found your post really helpful. It helped me all the way in completing my assignment; I am also giving a reference link of your blog in my case study. Thanks for posting such informative content. Keep posting
TDI Builder in Mohali

sumangalam propmart said...

Your post is too good mr richard

City center sector-32 Noida

davelindahl said...

Nice post.it will be very interesting and informative to us.
dave lindahl

BHAVIK PRAJAPATI said...

hjgjkh
Commercial Real Estate For Sale

Turesta istanbul said...

Apartment - An individual istanbul real estate
unit in a multi-unit building. The boundaries of the apartment are generally defined by istanbul real estate a perimeter of locked or lockable doors. Often seen in multi-story apartment buildings.

NaLimA KaPooR said...

Hello Richard,
your post is really too informative
And i recommend to choose Residential property in
Eldeco Apartments in Noida Expressway
for best deals, also recommends to invest in Eldeco Noida
for best return on investment.this is my personnel opinion and experience.