Public housing units vs. housing vouchers: accessibility, local public goods, and welfare
AbstractWe 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.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 40990.
Date of creation: 2012
Date of revision:
Public housing; housing vouchers; housing policy; welfare; residential location choice; local public goods; endogenous sorting;
Other versions of this item:
- Leung, Charles Ka Yui & Sarpça, Sinan & Yilmaz, Kuzey, 2012. "Public housing units vs. housing vouchers: Accessibility, local public goods, and welfare," Journal of Housing Economics, Elsevier, vol. 21(4), pages 310-321.
- Charles Ka Yui Leung & Sinan Sarpca & Kuzey Yilmaz, 2012. "Public Housing Units vs. Housing Vouchers: Accessibility, Local Public Goods, and Welfare," RCER Working Papers 574, University of Rochester - Center for Economic Research (RCER).
- Sinan Sarpca & Charles Ka Yui Leung & Kuzey Yilmaz, 2010. "Public Housing Units vs. Housing Vouchers: Accessibility, Local Public Goods, and Welfare," KoÃ§ University-TUSIAD Economic Research Forum Working Papers 1032, Koc University-TUSIAD Economic Research Forum.
- R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
- H40 - Public Economics - - Publicly Provided Goods - - - General
- D60 - Microeconomics - - Welfare Economics - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-09-09 (All new papers)
- NEP-GEO-2012-09-09 (Economic Geography)
- NEP-PBE-2012-09-09 (Public Economics)
- NEP-URE-2012-09-09 (Urban & Real Estate Economics)
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