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PAK policy is one of the important policies that has been adopted in housing market during the two recent decades. It mainly focuses on saving, development and downsizing. Now given that housing can be considered both as a capital and an expendable property and it has unique characteristics such as heterogeneity, durability and spatial stability, the present paper investigated how this policy-making is effective on housing supply considering the above characteristics and by means of Lucas supply function. The results revealed that this policy cannot have the required efficiency in this sector despite high saving of households and decreased floor area of residential units. This is while housing supply has not been influenced by investment of the private sector and financial credits.

Performance Assessment of PAK Policy in the Process of Housing Supply in Iran (Case Study: Isfahan province, 1992-2012)