Research Teams

DIE 02/16 - Subsidios a la oferta y decisiones de localización: el caso de la ley de vivienda de interés social

AutorAuthor/s: Berrutti Rampa, Felipe
This paper uses differences-in-differences to analyze the impact of a program which grants place-based subsidies to residential construction (Ley de Vivienda de Interés Social) on the location of housing developments in the city of Montevideo, Uruguay using administrative municipal data over the period 2007-2014. The results reveal that the policy had a sizable and statistically significant impact on the location of residential construction. The relative effect of the policy on treated areas is over 200% of the mean for square meters built and approximately 50% of the mean for the number of housing starts. Furthermore, the study shows that the policy increased the mean square meters of residential projects in treated zones. This study suggests that the Ley de Vivienda de Interés Social promoted a relocation process of residential construction towards the treated areas while simultaneously increasing the average size of housing projects in said areas. 
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