Leung, Charles Ka Yui and Sarpca, Sinan and Yilmaz, Kuzey (2012): Public housing units vs. housing vouchers: accessibility, local public goods, and welfare.
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We develop a general equilibrium model of residential choice and study the effects of two housing aid policies, public housing units and housing vouchers. Land is differentiated by both residential accessibility and local public goods, and the provision levels of local public goods are determined by property tax revenues and neighborhood compositions. Households differ in their incomes and preferences for local public goods. Housing aid policies are financed by general income taxes. We discuss how the location of public housing units is a fundamental policy variable, in addition to the numbers and sizes of units, and argue that vouchers not only cause less distortion for social welfare compared to public housing, but may also improve overall welfare.
|Item Type:||MPRA Paper|
|Original Title:||Public housing units vs. housing vouchers: accessibility, local public goods, and welfare|
|Keywords:||Public housing, housing vouchers, housing policy, welfare, residential location choice, local public goods, endogenous sorting|
|Subjects:||R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R10 - General
H - Public Economics > H4 - Publicly Provided Goods > H40 - General
D - Microeconomics > D6 - Welfare Economics > D60 - General
|Depositing User:||Charles Ka Yui Leung|
|Date Deposited:||01. Sep 2012 17:18|
|Last Modified:||13. Feb 2013 22:43|
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