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of time. The subsidies may be targeted to improvement of physical and social services, and may include basic home-ownership options and support for rental housing. Public health oriented subsidies are seldom tied to mortgage finance, since the beneficiary group often does not qualify for long-term loans. However, subsidies may
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TARGETED CAPITAL SUBSIDIES AND, ECONOMIC WELFARE gary fournierand david Rasmussen I. Introduction Both federal and state governmentagencies are actively involved inprograms designed toreduce the costof capitaltospecifictargeted groups of firms or individuals. At the federal level alone, there has
Create a low-cost national flood insurance program and a national plan to help relocate homeowners in high-risk flood zones,
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The necessary political. are currently either at high risk of debt distress, or already in debt distress. Figure 1: Debt.
Targeting specific farmers. smart subsidies should be targeted specifically at farmers, who do not already apply agricultural inputs, as well as the poorest and most vulnerable households. This reduces the risks of displacing commercial (non-subsidised) input sales and promotes pro-poor growth. Market-based solutions.
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A subsidy is a direct or indirect payment to individuals or firms, usually in the form of a cash payment from the government or a targeted tax cut.
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mortgage subsidy program for formal workers, have contradictory objectives and have a negative. transparent and can be targeted to the most deserving segments of society. Moreover, they do. explicitly or implicitly, in political discussions about subsidy intervention in the housing sector.
Opening-Up the Lower-Middle Income Housing Market in South Africa : The Role of Demand-Side Subsidies (Ingls)
All or a share or the top part of risk? Optional or mandatory? Targeted? State can pay premium for private insurance Reasons: Deal with uncertainties (small or large) about legal or political environment for recovery Cover extra risks associated with lower-income or high LTV lending Some Examples: Credit Risk/ Mortgage Insurance