David RobinsonProfessor of business administration, Duke's Fuqua School of Business.http://www.fuqua.duke.edu/faculty_research/faculty_directory/robinsonSpe... in entrepreneurial finance, empirical corporate finance; research director at Duke's Center for Entrepreneurship and Innovation.Quote:"I actually think this is one of the most significant changes that Raul Castro has put in place since taking power. Many of the earlier reforms were largely symbolic in nature, like allowing Cubans to go into western hotels. But this actually has the potential to change Cuban society."Havana has massive housing shortages. They have multiple generations of the same family living in tiny, cramped apartments. You can imagine how this affects marriages, families, friendships. Moreover, because the previous system didn't allow the 'user' of the property to sell, it resulted in massive allocation inefficiencies."A lot depends on the rules they put into place governing how home sales will occur. Can they sell to Miami Cubans who want to retire in Havana? If so, this could pump a lot of money into the Cuban economy."Also, while this is clearly a positive step, there are limits to how much we can expect from this: with no wholesale market, and very limited ability to procure cement and other home construction materials, there is little that people can do to renovate on a large scale."
