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 of Rochester - Center for Economic Research (RCER) in its series RCER Working Papers with number 574.
Length: 38 pages
Date of creation: Sep 2012
Date of revision:
Contact details of provider:
Postal: University of Rochester, Center for Economic Research, Department of Economics, Harkness 231 Rochester, New York 14627 U.S.A.
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.
- 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.
- Leung, Charles Ka Yui & Sarpca, Sinan & Yilmaz, Kuzey, 2012. "Public housing units vs. housing vouchers: accessibility, local public goods, and welfare," MPRA Paper 40990, University Library of Munich, Germany.
- H40 - Public Economics - - Publicly Provided Goods - - - General
- D60 - Microeconomics - - Welfare Economics - - - General
- H82 - Public Economics - - Miscellaneous Issues - - - Governmental Property
- R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-09-30 (All new papers)
- NEP-PBE-2012-09-30 (Public Economics)
- NEP-URE-2012-09-30 (Urban & Real Estate Economics)
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