The Italian Housing Market: Its Failures and Their Causes

Abstract

In this paper an economic housing-market model has been developed which is suitable for regional housing-market analysis. On the basis of this model a descriptive and explanatory analysis of the Italian housing market is given. The social problems connected with this are related to and confronted with the theory selected on the basis of this model and have been related to the political/social framework within which they were shaped. In the course of this process, four failures in the Italian housing market can be inferred. These prove to be the foundations of the social problems mentioned.