SUPR
Distributional effects of deregulating the Swedish rental housing market
Dnr:

NAISS 2024/22-26

Type:

NAISS Small Compute

Principal Investigator:

Fredrik Paues

Affiliation:

Stockholms universitet

Start Date:

2024-02-01

End Date:

2025-02-01

Primary Classification:

50201: Economics

Webpage:

Allocation

Abstract

This project investigates the effects of deregulating the Swedish rental housing market on the aggregate as well as on the disaggregate level. I am especially interested in the welfare implications of different transitional policies which move the economy from today's regulated state to a more liberalized state. While some policies would be preferred by newborns waking up in a world where those policies apply, the transition to that world from the world of today might be less palatable for the people inhabiting today's world. In order to analyse such I issues, I need a model in which households can respond to changes in their environment and where the distribution over relevant characteristics is sufficiently diverse. Thus, I develop a quantitative economic model where agents are heterogeneous with respect to age, income, wealth as well as housing tenure and make endogenous choices on housing and non-housing consumption, tenure, and savings. The work I intend to do on UPPMAX mostly relates to calibration and estimation of the model. That is, solving the model for many different parameterizations and analysing how it behaves it these different points in the parameter space.