Economics Command Economy Questions
In a command economy, the role of the housing market is typically limited or non-existent. The government or central planning authority controls the allocation and distribution of housing resources, including the construction, ownership, and allocation of housing units. The government determines the types of housing to be built, the locations, and the allocation of housing units to individuals or families. The housing market, as seen in market economies, where supply and demand determine prices and allocation, does not exist in a command economy.