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Federal homelessness policy: A robust political economy approach

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  • David S. Lucas

    (George Mason University)

Abstract

In the wake of the financial crisis, the United States government introduced a new large-scale initiative to address homelessness. The policy mandate is marked by both an unprecedented increase in federal funding and a dramatic reallocation of resources toward Housing First, a service model emphasizing immediate housing subsidization. Although this service paradigm has received support from a sizeable literature, our knowledge of its success to date has been limited. This paper sheds light on the unobservable or unmeasured costs of this new centralized approach to ending homelessness. I argue that federal homelessness policy under the Housing First approach 1) generates resource misallocation, 2) exacerbates the Samaritan’s dilemma, and 3) invites rent seeking.

Suggested Citation

  • David S. Lucas, 2017. "Federal homelessness policy: A robust political economy approach," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 30(3), pages 277-303, September.
    • Handle: RePEc:kap:revaec:v:30:y:2017:i:3:d:10.1007_s11138-016-0356-x
    DOI: 10.1007/s11138-016-0356-x
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    More about this item

    Keywords

    Homelessness; Housing first; Public policy; Robust political economy;
    All these keywords.

    JEL classification:

    • B53 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Austrian
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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