Effects of Housing Investment on the National Economy
The analysis to this point has focused on housing as a microcosm. Broader implications of residential investment for the national economies of countries in different stages of development were touched on in various contexts, notably the measurement of housing benefits. It remains now to examine these implications in depth. The present chapter deals with the effects of dwelling construction on labor absorption, income and savings, prices and the balance of payments. There are widely held beliefs on the consequences of housing investments for each of these economic aggregates. Here, as in the previous micro-analysis, the test of empirical evidence will be used to validate, disqualify or modify assertions and hypotheses about macro effects of housing and housing policies. The chapter includes a discussion of residential building as an instrument to guide the spatial distribution of the population and a note on political aspects of housing. The last subject may not be exactly within the province of economic analysis but it can be ignored only at the risk of retreat from reality.
KeywordsResidential Building Price Effect Trade Balance Housing Policy Housing Program
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