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Transferring Ownership of Public Housing to Existing Tenants: A Market Design Approach

Andersson, Tommy LU ; Ehlers, Lars and Svensson, Lars-Gunnar LU (2015) In Working Paper / Department of Economics, School of Economics and Management, Lund University
Abstract
This paper explores a housing market with an existing tenant in each house and where the existing tenants initially rent their houses. The idea is to identify equilibrium prices for the housing market given the prerequisite that a tenant can buy any house on the housing market, including the one that he currently is possessing, or continue renting the house he currently is occupying. The main contribution is the identification of an individually rational, equilibrium selecting, and group non-manipulable price mechanism in a restricted preference domain that contains almost all preference profiles. In this restricted domain, the identified mechanism is the equilibrium selecting mechanism that transfers the maximum number of ownerships to... (More)
This paper explores a housing market with an existing tenant in each house and where the existing tenants initially rent their houses. The idea is to identify equilibrium prices for the housing market given the prerequisite that a tenant can buy any house on the housing market, including the one that he currently is possessing, or continue renting the house he currently is occupying. The main contribution is the identification of an individually rational, equilibrium selecting, and group non-manipulable price mechanism in a restricted preference domain that contains almost all preference profiles. In this restricted domain, the identified mechanism is the equilibrium selecting mechanism that transfers the maximum number of ownerships to the existing tenants. We also argue that the theoretical model represents an extension and an improvement of the U.K. Housing Act 1980 whose main objective is to transfer the ownership of the houses to the existing tenants. (Less)
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author
organization
publishing date
type
Working Paper
publication status
published
subject
keywords
Existing tenants, equilibrium, minimum equilibrium prices, maximum trade, group non-manipulability, dynamic price process
in
Working Paper / Department of Economics, School of Economics and Management, Lund University
issue
12
pages
34 pages
publisher
Department of Economics, Lund Universtiy
language
English
LU publication?
yes
id
a36bf237-1006-4f05-a2f1-3ba989ba3dc3 (old id 5364070)
alternative location
http://swopec.hhs.se/lunewp/abs/lunewp2015_012.htm
date added to LUP
2015-04-30 12:55:08
date last changed
2016-10-11 08:44:52
@misc{a36bf237-1006-4f05-a2f1-3ba989ba3dc3,
  abstract     = {This paper explores a housing market with an existing tenant in each house and where the existing tenants initially rent their houses. The idea is to identify equilibrium prices for the housing market given the prerequisite that a tenant can buy any house on the housing market, including the one that he currently is possessing, or continue renting the house he currently is occupying. The main contribution is the identification of an individually rational, equilibrium selecting, and group non-manipulable price mechanism in a restricted preference domain that contains almost all preference profiles. In this restricted domain, the identified mechanism is the equilibrium selecting mechanism that transfers the maximum number of ownerships to the existing tenants. We also argue that the theoretical model represents an extension and an improvement of the U.K. Housing Act 1980 whose main objective is to transfer the ownership of the houses to the existing tenants.},
  author       = {Andersson, Tommy and Ehlers, Lars and Svensson, Lars-Gunnar},
  keyword      = {Existing tenants,equilibrium,minimum equilibrium prices,maximum trade,group non-manipulability,dynamic price process},
  language     = {eng},
  note         = {Working Paper},
  number       = {12},
  pages        = {34},
  publisher    = {Department of Economics, Lund Universtiy},
  series       = {Working Paper / Department of Economics, School of Economics and Management, Lund University},
  title        = {Transferring Ownership of Public Housing to Existing Tenants: A Market Design Approach},
  year         = {2015},
}