Arnott, Richard2017-08-282017-08-282008https://hdl.handle.net/10986/28043All countries have a formal economy and an informal economy. But, on average, in developing countries the relative size of the informal sector is considerably larger than in developed countries. This paper argues that this has important implications for housing policy in developing countries. That most poor households derive their income from informal employment effectively precludes income-contingent transfers as a method of redistribution. Also, holding fixed real economic activity, the larger is the relative size of the informal sector, the lower is fiscal capacity, and the more distortionary is government provision of a given level of goods and services, which restricts the desirable scale and scope of government policy. For the same reasons, housing policies that have proven successful in developed countries may not be successful when employed in developing countries.en-USCC BY 3.0 IGOAFFORDABLE HOUSINGAUTOMOBILE OWNERSHIPBANKSBASIC EDUCATIONBONDSBORROWINGBUILDING CODESBUILDING MATERIALSCENTRAL GOVERNMENTSCENTRAL] GOVERNMENTSCITIESCIVIL SERVICECLINICSCOMMUNITIESCOMMUNITY PARTICIPATIONCOUNTRYSIDECRIMEDEBTDECENTRALIZATIONDECONCENTRATIONDWELLINGECONOMETRICSECONOMIC EFFICIENCYECONOMIC GROWTHELECTRICITYEMPLOYMENTENTREPRENEURSHIPEVASIONEVICTIONEXTERNALITIESFINANCIAL CRISESFINANCIAL INSTITUTIONSFINANCIAL MARKETSFISCAL FEDERALISMFISCAL POLICIESGOVERNMENT HOUSINGGOVERNMENT INTERVENTIONHABITATHEALTH EXPENDITURESHEALTH SERVICESHOME OWNERSHIPHOMELESSNESSHOMEOWNERSHOUSEHOLDSHOUSINGHOUSING CONDITIONSHOUSING CONSTRUCTIONHOUSING DEVELOPMENTHOUSING FINANCEHOUSING FOR THE POORHOUSING MARKETHOUSING MARKETSHOUSING NEEDSHOUSING POLICYHOUSING PROBLEMSHOUSING PROGRAMSHOUSING PROJECTSHOUSING PROVISIONHOUSING SUBSIDIESHOUSING SUBSIDYHOUSING UNITSHUMAN SETTLEMENTSINCOMEINCOME TAXESINFORMAL HOUSINGINFORMAL SETTLEMENTSINSTITUTIONAL REFORMINTEREST RATESLABOR MARKETLAND TAXATIONLAND TENURELAND USELAWSLICENSESLIVING CONDITIONSLOCAL AUTHORITIESLOCAL GOVERNMENTSLOCAL LEVELMATCHING GRANTSMICROFINANCEMIGRATIONMUNICIPALITIESNATIONAL GOVERNMENTSNEIGHBORHOODNEIGHBORHOODSOCCUPANCYOCCUPATIONOVERCROWDINGOWNER OCCUPANCYPER CAPITA INCOMEPOLITICAL ECONOMYPOOR NEIGHBORHOODSPOVERTY REDUCTIONPRIVATE HOUSINGPRIVATE SECTORPRIVATIZATIONPROFITABILITYPROPERTY RIGHTSPROPERTY TAXESPROVISION OF INFRASTRUCTUREPUBLICPUBLIC BUILDINGSPUBLIC CHOICEPUBLIC ECONOMICSPUBLIC EXPENDITUREPUBLIC EXPENDITURESPUBLIC FUNDSPUBLIC GOODSPUBLIC HOUSINGPUBLIC INFRASTRUCTUREPUBLIC PARTNERSHIPSPUBLIC POLICYPUBLIC SECTORPUBLIC SERVICEPUBLIC SERVICE PROVISIONPUBLIC SERVICESPUBLIC WORKSRENT CONTROLRENTAL HOUSINGRENTINGRENTSRESOURCE MOBILIZATIONREVENUE SOURCESSAVINGSSELF-HELPSELFHELP HOUSINGSETTLEMENTSETTLEMENTSSEWAGESHELTERSLUMSLUMSSOCIAL WELFARESOLID WASTE DISPOSALSQUATTERSQUATTER SETTLEMENTSSQUATTERSSUBSIDIARYSUBSIDIZED HOUSINGTAXTAX RATESTAX REVENUETAX REVENUESTAXATIONTRAFFICTRAFFIC CONGESTIONURBAN DEVELOPMENTURBAN HOUSINGURBAN INFRASTRUCTUREURBAN LANDURBAN POPULATIONURBANIZATIONWATER SUPPLYZONINGWorking PaperWorld Bank10.1596/28043