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RESUMEN
Este artículo combina una metodología de diferencias en diferencias con un diseño de discontinuidad espacial para evaluar los efectos sobre la localización de la construcción residencial de un programa que otorga subsidios basados en la localización en Montevideo, la capital uruguaya, utilizando datos administrativos para el período 2007-2015. Los resultados muestran que la política tiene un impacto estadísticamente significativo y de gran magnitud sobre la localización de la construcción residencial. Además, los hallazgos indican que la política incrementa el tamaño promedio de los proyectos inmobiliarios. El impacto del programa sobre la densificación de la ciudad, sin embargo, es heterogéneo. Finalmente, la evidencia sobre externalidades sobre las zonas no subsidiadas no es concluyente.
Palabras clave: subsidios, localización, mercado de vivienda, Uruguay.
Clasificación JEL: D04, H25, R31
ABSTRACT
This paper combines a spatial discontinuity design with differences-in-differences to evaluate the effects of a program which grants place-based subsidies to residential construction on the location of housing developments in Montevideo, the Uruguayan capital, using administrative municipal data over the period 2007-2015. The results reveal that the policy has a sizeable and statistically significant impact on the location of residential construction. Also, findings indicate that the policy increases the average size of residential projects. The policy's impact on the densification of the city, however, is heterogeneous. Finally, the evidence on spillovers on non-subsidized zones is mixed.
Keywords: subsidies, location, housing market, Uruguay.
JEL Classification: D04, H25, R31
(ProQuest: ... denotes formulae omitted.)
1.INTRODUCTION
I estimate the relocation effects of a program which grants placebased subsidies to residential construction. The program of interest is the Social Interest Housing Promotion Law (LVIS, which stands for its Spanish name Ley de Promoción de la Vivienda de Interés Social), which has subsidized more than 14,000 housing units since 2012, through tax credits to builders and owners. Analysing relocation effects seeks to shed light on whether the policy achieved two of its stated purposes: improving social integration and maximizing utilization of existing city infrastructure2. This aspect of the policy has been somewhat neglected from public debate, which has been focused in determining whether the policy has improved the access of low and middle-income sectors to decent housing. Moreover, there are no academic studies that give evidence to support the claim that the...