Public Expenditure for Housing: The Italian Case

  • Francesco Forte
Part of the International Economic Association Conference Volumes book series (IEA)

Abstract

Publicly financed positive action for housing may be justified on several grounds. One would hardly, however, consider as a good reason the pressure of the middle class to improve their living standards. In Italy, that pressure brought about a 25-year exemption from income tax on buildings for any nonluxury new housing, thus heavily damaging the source of revenue for local financing, particularly in expanding areas. The effectiveness of the low-cost housing programme financed through a 1 per cent tax on payrolls and additional State contributions, has been reduced by the fact that local authorities, who have to provide the land and the infrastructures, are increasingly indebted and finding it difficult to finance them, and by the complicated procedures for land condemnation and for the construction of these houses. The new law of 1971, which broadens the scope of the low-cost housing policy, has been impaired by similar factors and by additional bureaucratic complications, so that papers, rather than houses, have been produced. A much simpler solution, in which, at each regional level, global conventions—including land procurement, infrastructures, housing construction and/or urban renewal—are arranged with large contractors, is suggested.

Keywords

Depression Transportation Income Expense Sorb 

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References

  1. Aaron, Henry J., Federal Housing Subsidies: History, Problems and Alternatives, (Washington, DC: The Brookings Institution, 1973).Google Scholar
  2. Aaron, Henry J., Shelter and Subsidies: Who Benefits from Federal Housing Policies? (Washington, DC: The Brookings Institution, 1972).Google Scholar
  3. CENSIS, Quindicinale di note e commenti (several issues).Google Scholar
  4. Ministero LL.PP, ‘Relazione per il CIPE, attuazione del programma di edilizia residenziale’ (29 Oct 1973) unpublished manuscriptGoogle Scholar
  5. Villani, Andrea, La politico dell’abitazione: analisis dell alternative di intervento publico — Il caso italiano, (Milan: Franco Angeli, 1970).Google Scholar

Copyright information

© International Economic Association 1977

Authors and Affiliations

  • Francesco Forte
    • 1
  1. 1.University of TurinItaly

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