Abstract
The transaction costs theory has been widely used in all business activities related to “transaction costs” since it was proposed by Ronald Coase in 1937. Before firms choose to enter the market, “transaction costs” will inevitably occur, which affects benefits. The rental housing market is a commercial market, and any external intervention will affect the resource allocation of this industry. This study explores the effects of the subsidies of the “rental housing subsidy policy” in Taiwan on the objectives of the rental housing policy by the transaction costs theory. This empirical study proves that policy objectives cannot be achieved by fixed and equal subsidy models, and expects to provide a basic theoretical framework that can serve as a reference when measuring the application of transaction costs to the policy subsidy model.
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