Housing Subsidies: Definitions and Comparisons

In this paper the meaning of the term 'housing subsidy' is reviewed and the theoretical and practical problems of measuring the value of housing subsidies and making comparisonsbetween countries is demonstrated.The definitions of both 'subsidy' and 'housing subsidy' are questioned. The paper shows that what is and is not a housing subsidy is often ill defined. More rigorous analysis, it is argued, requires the use of 'benchmarks' against which the changes initiated by subsidies can be judged. The use of alternative benchmarks with respect to home owners, tenants and landlords in several European countries is demonstrated.