Housing Privatization In Romania

19 Pages Posted: 7 Dec 2017

See all articles by Robert Buckley

Robert Buckley

The Urban Institute

Ashna Mathema

World Bank - Policy Research Department

Date Written: January 2018

Abstract

Over the past three decades, Romanian housing rights changed from a strictly managed public stock to one governed by individual decision‐making. And while it is typical that widespread private ownership provides a basis for a well‐functioning housing market, in Romania this has not been the case. Indeed, rather than creating a market that spontaneously allocates resources efficiently, housing privatization in Romania has created exclusion rights, thus creating an Anti‐commons problem. This problem can have effects similar to those of the tragedy of the Commons in which those who share a common good overuse it. In the Anti‐commons, in contrast, if too many owners have the right to exclude others from use of a resource, the resource is underused. In both cases, the rights allocation wastes resources.

Keywords: Privatization, property rights, housing markets, regional convergence, economic growth

Suggested Citation

Buckley, Robert and Mathema, Ashna S, Housing Privatization In Romania (January 2018). Economics of Transition, Vol. 26, Issue 1, pp. 127-145, 2018, Available at SSRN: https://ssrn.com/abstract=3083751 or http://dx.doi.org/10.1111/ecot.12140

Robert Buckley (Contact Author)

The Urban Institute ( email )

2100 M Street, NW
Washington, DC 20037
United States

Ashna S Mathema

World Bank - Policy Research Department ( email )

1818 H Street
Washington, DC 20433
United States

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