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| Author(s): |
Rômullo Carvalho da Silva
Total Authors: 1
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| Document type: | Master's Dissertation |
| Press: | São Paulo. |
| Institution: | Universidade de São Paulo (USP). Faculdade de Economia, Administração e Contabilidade (FEA/SBD) |
| Defense date: | 2017-10-03 |
| Examining board members: |
Danilo Camargo Igliori;
Ciro Biderman;
Ariaster Baumgratz Chimeli;
Fabio Adriano Miessi Sanches
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| Advisor: | Danilo Camargo Igliori |
| Abstract | |
Real estate activity is notably influenced by local land use regulation. By acting as redtape costs or explicitly through compensatory payments, such rules typically increase construction costs by reducing supply and increasing demand in the housing market, which leads to higher prices. This is the first study to model the decision-making process of housing supply using a game theoretic approach. To shed light on the roleof regulation and competition in this industry, I employ a static-entry model that incorporates the demand, cost and strategic factors common to the activity. I built aunique data set forthe city of São Paulo, Brazil, with information on the universe ofnew residential buildings launched in the city, along with a history of all licenses requested by the developers tothe government for each project. My empirical results show that the regulation play akey role in developer activity. For the areas with the most intense activity of the city,the bureaucracy in the residential approval process cost annually R$ 47 millions (US$ 14millions) by entrant firm. (AU) | |
| FAPESP's process: | 16/08686-7 - Housing supply and urban territorial disputes in a dynamic structural framework |
| Grantee: | Rômullo Carvalho da Silva |
| Support Opportunities: | Scholarships in Brazil - Master |