Stratification and Public Utility Services in Colombia: Subsidies to Households or Distortions on Housing Prices?

Borradores de Economia
Number: 
422
Published: 
Classification JEL: 
C0, D31, H4, H22, H24, I3
Keywords: 
Human capital agglomeration, Social returns, Private returns, Externalities, Uncertainty, Fiscal policy

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Domiciliary public utility services in Colombia have a cross subsidy system which charges subsidized rates to the households who live in houses located in strata associated to low wealth levels, and taxed rates to the better off. We assesses the hypothesi