Skip to main content
SpringerLink
Log in
Book cover

Housing Finance in Emerging Markets pp 49–81Cite as

Government Policies and Their Implications for Housing Finance

  • Chapter
  • First Online:

Abstract

This chapter develops a framework to clarify the roles of the private and public sectors in expanding formal housing finance markets. It examines the reasons for government intervention in housing markets and the types of regulatory and subsidy interventions that may improve market outcomes for different market segments.

This article was initially written in late 2006 and revised in May 2010 to reflect relevant, recent developments, including the impact of the financial crisis.

This is a preview of subscription content, log in via an institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   109.00
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   139.00
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   139.00
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Accion (2003) “Building the Homes of the Poor – One Brick at a Time: Housing Improvement Lending at Mibanco”, Insight, No 4. www.Accion.org/pubs.

  • Allen, F. and D. Gale (2001) “Comparing Financial Systems”, The MIT Press: Cambridge, Massachusetts.

    Google Scholar 

  • Angel, S. (2000) “Housing Policy Matters, A Global Analysis”, Oxford University Press: New York.

    Google Scholar 

  • Barker, K. (2004) “Delivering Stability: Securing our future housing needs”, HM Treasury: London.

    Google Scholar 

  • Bertaud, A. (http://alain.bertaud.com)

  • Blood, R. (2003) “Key Policy and Regulatory Issues for Credit Insurance and Guarantee Schemes”, presentation at the World Bank Conference on Housing Finance in Emerging Markets. March 2003.

    Google Scholar 

  • Buckley, R. and J. Kalarickal (2005) “Thirty Years of World Bank Shelter Lending – What have we Learned?” Directions in Development – Infrastructure. The World Bank: Washington DC.

    Google Scholar 

  • Butler, S. B. (2006) “Broadening Mortgage Markets by Attending to Legal Fundamentals”, Lecture notes for the Wharton International Housing Finance Program, University of Pennsylvania.

    Google Scholar 

  • Butler, S. B. (2003) “Housing Finance in Emerging Markets: Policy and Regulatory Challenges”, Paper presented at the World Bank Conference on Housing Finance in Developing and Emerging Economies. March 2003.

    Google Scholar 

  • Chiuri, M. C. and T. Japelli (2003) “Financial Market Imperfections and Homeownership: A Comparative Study”, European Economic Review. 47(02): 857–875.

    Article  Google Scholar 

  • COFOPRI (2005) “Peru pais de Proppietarios”, Lima, Peru. de Soto, H. (2000) “The Mystery of Capital”, Basic Books: New York.

    Google Scholar 

  • Diamond, D. B. (1999) “The Transition in Housing Finance in Central Europe and Russia: 1989–1999”, The Urban Institute: Washington DC.

    Google Scholar 

  • Diamond, D. B. and M. C. Hoek-Smit (2000) “Unblocking Finance For Affordable Housing”, Report for the National Housing Finance Corporation of South Africa, International Housing Finance Program, Wharton School, University of Pennsylvania.

    Google Scholar 

  • Dipasquale, D. (1999) “Why Don’t We Know More About Housing Supply?” Journal of Real Estate Finance and Economics. 18(1): 9–23.

    Article  Google Scholar 

  • Duebel, A. (2000) “Separating Homeownership Subsidies from Finances – Traditional Mortgage Market Policies, Recent Reform Experiences and Lessons for Subsidy Reform”, The World Bank, Final Draft, mimeo.

    Google Scholar 

  • Duebel, A., J. Brzeski and E. Hamilton (2006) “Rental Choice and Housing Policy Realignment in Transition: Post-Privatization Challenges in the Europe and Central Asian Region”, World Bank Policy Research Paper, WPS3884. Washington DC.

    Google Scholar 

  • Ferguson, B. (2004) “The Key Importance of Housing Microfinance”, F. Daphnis and B. Ferguson, Housing Microfinance: A Guide to Practice, Kumarian Press: Bloomfield CT.

    Google Scholar 

  • Field, E. (2002) “Urban Property Rights and Labor Supply in Peru”, Department of Economics, Princeton University.

    Google Scholar 

  • Field, E. and M. Torero (2006) “Do Property Titles Increase Credit Access Among the Urban Poor?” manuscript.

    Google Scholar 

  • Franklin, A. and D. Gale (2001) “Comparing Financial Systems”, The MIT Press: Cambridge MA.

    Google Scholar 

  • Friedman, J., E. Jimenez and M. Stephen (1988) “The Demand for Tenure Security in Developing Countries”, Journal of Development Economics 29(2): 185–198.

    Article  Google Scholar 

  • Galal A. and O. Razzaz (2001) “Reforming Land and Real Estate Markets”, Policy Research Working Paper 2616, The World Bank: Washington DC.

    Google Scholar 

  • Galiani, S. and E. Schargrodsky (2006) “Property Rights for the Poor”, Manuscript.

    Google Scholar 

  • Gleaser, E. and J. Gyourko (2003) “The Impact of Building Restrictions on Housing Affordability, Policies to Promote Affordable Housing”, Economic Policy. (June) 9(2): 21–39.

    Google Scholar 

  • Gleaser, E., J. Gyourko and R. Saks (2005) “Why have House Prices Gone up?” NBER Working Paper 11129.

    Google Scholar 

  • Hirad, A. and P. M. Zorn (2001) “A Little Knowledge is a Good Thing: Empirical Evidence of the Effectiveness of Pre-Purchase Home-Ownership Counseling”, Freddie Mac: Washington DC.

    Google Scholar 

  • Hoek-Smit, M. C. (1982) “Improvement Strategies for Lower-Income Urban Settlements in Kenya”, The Residential Circumstances of the Urban Poor in Developing Countries: Housing Conditions and Improvement Strategies, Praeger Special Studies: New York.

    Google Scholar 

  • Hoek-Smit, M. C. (2001) “Home Ownership Assistance Programs for Thailand: A Feasibility Study”, Prepared for the Ministry of Finance and the Government Housing Bank, Government of Thailand and The World Bank: Bangkok and Washington DC.

    Google Scholar 

  • Hoek-Smit, M. C. (2002) “Implementing Indonesia’s New Housing Policy: The Way Forward, Findings and Recommendations of the Technical Assistance Project–Policy Development for Enabling the Housing Market to Work in Indonesia”, The World Bank: Washington DC.

    Google Scholar 

  • Hoek-Smit, M. C. (2003) “Subsidizing Housing or Housing Finance?” Paper for the International Housing Conference on the occasion of the 50th anniversary of the Hong Kong Housing Authority, February 2004.

    Google Scholar 

  • Hoek-Smit, M. C. (2004) “Making Sense of the Universe of Housing Subsidies”, paper prepared for the Housing Credit Conference, Dubna, Russia, February 2004, IHFP, Wharton School, University of Pennsylvania.

    Google Scholar 

  • Hoek-Smit, M. C. and D. Diamond (2003) “Subsidizing Housing Finance”, Housing Finance International, June 2003, London UK.

    Google Scholar 

  • Hoek-Smit, M. C. and J. J. Hoek (1998) “Property Rights and Investment in Housing in Botswana, Tanzania and Swaziland”, unpublished manuscript. International Monetary Fund (2004) “The Global House Price Boom”, World Economic Outlook, Chapter II, Washington DC.

    Google Scholar 

  • Jimenez, E. (1984) “Tenure Security and Urban Squatting”, Review of Economics and Statistics. 66(4): 556–567.

    Article  Google Scholar 

  • Kose, M. A., E. Prasad, K. Rogoff, and S-J Wei (2006) “Financial Globalization: A Reappraisal”, IMF Working Paper 06/189, Washington DC.

    Google Scholar 

  • Kritayanavaj, B. (2002) “Financing Affordable Homeownership in Thailand: Roles of the Government Housing Bank since the Economic Crisis”, Housing Finance International, (December): Chicago.

    Google Scholar 

  • MacLennan, D., J. Muellbauer and M. Stephens (2000) “Asymmetries in Housing and Financial Market Institutions and EMU”, in T. Jenkinson (ed.) Readings in Macroeconomics, pp. 74–98. Oxford University Press: Oxford.

    Google Scholar 

  • Malpezzi, S. and S. K. Mayo (1997) “Getting Housing Incentives Right: A Case Study of the Effects of Regulation, Taxes and Subsidies on Housing Supply in Malaysia”, Land Economics. (August) 73(3): 372–391.

    Google Scholar 

  • Mayo, S. K. (1993) “Housing, Enabling Markets to Work – with Technical Supplements”, A World Bank Policy Paper, The World Bank: Washington DC.

    Google Scholar 

  • Mayo, S. K. (1999) “Subsidies in Housing”, Paper prepared for the Sustainable Development Department Technical Paper Series”, Inter-American Development Bank: Washington DC.

    Google Scholar 

  • Mayo, S. K. and D. Gross (1987) “Sites and Services – and Subsidies: the Economics of Low-cost Housing in Developing Countries”, World Bank Economic Review. 1(2), 301–335.

    Article  Google Scholar 

  • Meen, G. (2002) “Why Do Mortgage Markets Matter?”, Economic Outlook. 24:4, 12–17.

    Article  Google Scholar 

  • Mills, E. S. (1987) “Has the United States Overinvested in Housing”, Real Estate Economics. 15(1): 601–616. Quigley, J. M. and R. Steven (2004) “Is Housing Unaffordable? Why isn’t It More Affordable?” Journal of Economic Perspective. 18(1) winter 2004: 191–214.

    Google Scholar 

  • Razzaz, O. (1993) “Examining Property Rights and Investment in Informal Settlements: The Case of Jordan”, Land Economics. November 1993.

    Google Scholar 

  • Rajan, R. G. and L. Zingales (2003) “The Great Reversals: the Politics of Financial Development in the Twentieth Century”, Journal of Financial Economics. 69: 5–50.

    Article  Google Scholar 

  • Renaud, B. (1999) “The Financing of Social Housing in Integrating Financial Markets: A View from Developing Countries”, Urban Studies. 36(4): 755–773.

    Article  Google Scholar 

  • Seraj, A. (2003) “Solving Housing Problems through Private Sector Development”, Water and Sanitation for Cities, Bangladesh Institute of Planners, Centre for Urban Studies: Dhaka.

    Google Scholar 

  • Van Horne, J. C. (1973) “Financial Market Rates and Flows”, Prentice Hall, Englewood Cliffs, NJ (second edition).

    Google Scholar 

  • World Bank (undated, assumed 2004/05) “Islamic Republic of Iran: Housing Sector Strategy”, The World Bank: Washington DC.

    Google Scholar 

  • World Bank (2008) “Housing Finance in Emerging Market Economies”, The

    Google Scholar 

  • World Bank: Washington DC.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Wharton School, University of Pennsylvania, Philadelphia, USA

    Marja C. Hoek-Smit (Former President)

Authors
  1. Marja C. Hoek-Smit
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. , Senior Vice President, KfW Entwicklungsbank, Palmengartenstr. 5, Frankfurt am Main, 60325, Germany

    Doris Köhn

  2. Trophy Lane 2529, Reston, 20191-2126, Virgin Islands, USA

    J. D. von Pischke

Rights and permissions

Reprints and permissions

Copyright information

© 2011 Springer-Verlag Berlin Heidelberg

About this chapter

Cite this chapter

Hoek-Smit, M.C. (2011). Government Policies and Their Implications for Housing Finance. In: Köhn, D., von Pischke, J. (eds) Housing Finance in Emerging Markets. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-77857-8_3

Download citation

  • DOI: https://doi.org/10.1007/978-3-540-77857-8_3

  • Published:

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-540-77856-1

  • Online ISBN: 978-3-540-77857-8

  • eBook Packages: Business and EconomicsEconomics and Finance (R0)

Publish with us

Policies and ethics

Search

Navigation