The "flats-for-land" system in Greece : an idiosyncratic equity financing mechanism in the post-War period

The "flats-for-land" system was an equity financing mechanism extensively used in Greece following World War II to alleviate the acute housing crisis caused by mass migration from the countryside to big cities. Drawing on historical evidence and using a parsimonious VAR model, we show that the mechanism significantly stimulated housing production and accelerated Greece’s vertical urban expansion, despite the country’s underdeveloped banking system and even in the absence of state financing.