Re: [OPE-L] How the imputed rental value of owner-occupied housing can boost GDP

From: Paul Cockshott (wpc@DCS.GLA.AC.UK)
Date: Sun Dec 25 2005 - 16:36:33 EST

Jurrian wrote:
So anyway, as you can see, just as with business enterprises, if more
*own* homes rather than *rent* them, official total productivity
increase, and official total net output and GDP goes up. Yeah, you can


Why should that be the case.

Surely a shift from rented to owner occupied properties will be

in a fall in actual rents and a compensating rise in imputed rents.


The rise in rent, imputed or actual, would tend to reflect the

significance of monopolized property in urban land. The difference

the capitalized price of houses and their construction costs reflects

capitalized rent that could be obtained from the houses. Since urban

is finite its price rises as a consequence of general capital


Imputed rent may be imaginary, but its capitalization definitely is not

at least from the standpoint of individual agents who can trade in their

city center properties for shares and other capital assets.


It would be interesting to analyse what real value flows are associated

with it in the form of flows into and out of savings and loan

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