Leung, Charles Ka Yui and Sarpca, Sinan and Yilmaz, Kuzey (2012): Public housing units vs. housing vouchers: accessibility, local public goods, and welfare.
Download (354kB) | Preview
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:||22. Aug 2015 06:11|
Alonso, W., 1964, Location and land use. Cambridge: Harvard University Press.
Bingley, P., Walker, I., 2001, Housing subsidies and work incentives in Great Britain, Economic Journal, 111, 86-103.
Bowman, W., Cordes, J., Metcalf, L., 2009, Preferential tax treatment of property used for social purposes: fiscal impacts and public policy implications, in Erosion of the property tax base: trends, causes and consequences, ed. By Augustine, N., Bell, M., Brunori, D., and J. Youngman, p.269-294, Cambridge: Lincoln Institute of Land Policy.
Davidoff, T., 2005, Income sorting: measurement and income decomposition, Journal of Urban Economics, 58, 289-303.
De Bartolome, C., Ross, S., 2003, Equilibria with local governments and commuting: income sorting vs. income mixing, Journal of Urban Economics, 54, 1-20.
Downs, A., 1991, Deciding how to use scare Federal Housing Aid Funds, Housing Policy Debate, 2, 439-463.
Ellickson, B., 1971, Jurisdictional fragmentation and residential choice, American Economic Review, 61, 334-339.
Epple, D., Filimon, R. Romer, T., 1984, Towards an integrated treatment of voting and residential choice, Journal of Public Economics, 24, 281-308.
Epple, D., Filimon, R. Romer, T., 1993, Existence of voting and housing equilibrium in a system of communities with property taxes, Regional Science and Urban Economics, 23, 585-610.
Epple, D., Geyer, J., Sieg, H., 2009, Excess Demand and rationing in equilibrium in the market for public housing, mimeo.
Fernandez, R., Rogerson, R., 1996, Income distribution, communities, and the quality of public education, Quarterly Journal of Economics, 111, 135-164.
Fujita, M., 1999, Urban economic theory: land use and city size. Cambridge: Cambridge University Press.
Glaeser, E., Kahn, M., Rappaport, J., 2000, Why do the poor live in cities? NBER Working Paper 7936.
Green, R., Malpezzi, S., 2003, A Primer on U.S. housing markets and housing policy. Washington, D. C.: Urban Institute.
Hanushek, E., Sarpca, S., Yilmaz, K., 2011, Private schools and residential choices: accessibility, mobility, and welfare, B. E. Journal of Economic Analysis and Policy, 11, 1 (Contributions) Article 44.
Hanushek, E., Yilmaz, K., 2007, The complementarity of Tiebout and Alonso, Journal of Housing Economics, 16, 243-261.
Hanushek, E., Yilmaz, K., 2012, Household location and schools in metropolitan areas with heterogeneous suburbs: Tiebout, Alonso, and government policy, Journal of Public Economic Theory, forthcoming.
Hastings, J., Kane, T., Steiger, D., 2008, Heterogeneous preferences and the efficacy of public school choice, mimeo.
Hulse, K., Randolph, B., 2005, workforce disincentive effects of housing allowances and public housing for low income households in Australia, European Journal of Housing Policy, 5, 147-165.
Kenyon, D., Langley, A., 2010, Payments in Lieu of taxes, balancing municipal and nonprofit interests, Cambridge: Lincoln Institute of Land Policy.
Laferrere, A., Le Blanc, D., 2006, Housing policy: low-income households in France, in Arnott, R. and D. McMillen ed., A Companion to urban economics, Oxford: Blackwell Publishing.
Lunney, F., 2009, Payment in Lieu of axes Programs (PILOTs) for affordable housing complexes, Alliance for housing subsidies report. Available at http://www.allianceforhousingsolutions.org/
Malpezzi, S., 2012, U.S. rental housing markets and policies: before and after the Great Financial Crisis, U. of Wisconsin, Madison, mimeo.
Mills, E. S., 1972, Studies in the structure of the urban economy, Baltimore: John Hopkins University Press.
Muth, R. F., 1969, Cities and housing, Chicago: University of Chicago Press.
Nechyba, T., 1999, School finance induced migration patterns: the impact of private school vouchers, Journal of Public Economic Theory, 1, 5-50.
Nechyba, T., 2000, Mobility, targeting and private-school vouchers, American Economic Review, 90, 130-146.
Olsen, E., 2003, Housing programs for low-income households, in Means-tested transfer programs in the United States, ed. by Moffitt, R., Chicago: University of Chicago Press.
Olsen, E., Tyler, C., King, J., Carrillo, P., 2005, The effects of different types of housing assistance on earnings and employment. Cityscape: a Journal of Policy Development and Research, 8, 163-187.
Priemus, H., 2000, Rent subsidies in the USA and housing allowances in the Netherlands: world apart, International journal of Urban and Regional Research, 24, 700-712.
Priemus, H., 2001, Poverty and housing in the Netherlands: a plea for tenure-neutral policy, Housing Studies, 16, 277-289.
Sacerdote, B., 2011, Peer effects in education: how might they work, how ig are they and how much do we know thus far? In Handbook of the Economics of Education, vol 3, ed. by Hanushek, E., Machin, S., Woessmann, New York: Elsevier.
Smeeding, T. M., Coder, J., Fritzell, J., Hagenaars, A. M., Hauser, R., Jenkins, S., Saunders, P., Wolfson, M., 1993, Poverty, inequality and family living standards impacts across seven nations: the effect of noncash subsidies for health, education, and housing, Review of Income and Wealth, 39, 229-256.
Straszheim, M., 1987, The theory of urban residential location, in Handbook of Regional and Urban Economics, ed. by Hendersson, J. V. and J. F. Thisse, New York: Elsevier.
Tiebout, C. M., 1956, A pure theory of local expenditures, Journal of Political Economy, 64, 416-424.
Von Thunen, J. H., 1826, Der Isolierte Staat in Beziehung auf Landwirtschaft und Nationalekonomie. Hamburg.