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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
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)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ellickson, Bryan, 1971. "Jurisdictional Fragmentation and Residential Choice," American Economic Review, American Economic Association, vol. 61(2), pages 334-39, May.
- Fernandez, Raquel & Rogerson, Richard, 1996. "Income Distribution, Communities, and the Quality of Public Education," The Quarterly Journal of Economics, MIT Press, vol. 111(1), pages 135-64, February.
- Sacerdote, Bruce, 2011. "Peer Effects in Education: How Might They Work, How Big Are They and How Much Do We Know Thus Far?," Handbook of the Economics of Education, Elsevier.
- Kath Hulse & Bill Randolph, 2005. "Workforce Disincentive Effects of Housing Allowances and Public Housing for Low Income Households in Australia," European Journal of Housing Policy, Taylor and Francis Journals, vol. 5(2), pages 147-165, August.
- Edgar O. Olsen, 2001.
"Housing Programs for Low-Income Households,"
NBER Working Papers
8208, National Bureau of Economic Research, Inc.
- Hugo Priemus, 2000. "Rent Subsidies in the USA and Housing Allowances in The Netherlands: Worlds Apart," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 24(3), pages 700-712, 09.
- Hanushek, Eric & Yilmaz, Kuzey, 2007. "The complementarity of Tiebout and Alonso," Journal of Housing Economics, Elsevier, vol. 16(2), pages 243-261, June.
- Smeeding, Timothy M, et al, 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, International Association for Research in Income and Wealth, vol. 39(3), pages 229-56, September.
- Charles A. M. de Bartolome & Stephen L. Ross, 2002.
"Equilibria with Local Governments and Commuting: Income Sorting vs. Income Mixing,"
2002-01, University of Connecticut, Department of Economics, revised Mar 2003.
- de Bartolome, Charles A. M. & Ross, Stephen L., 2003. "Equilibria with local governments and commuting: income sorting vs income mixing," Journal of Urban Economics, Elsevier, vol. 54(1), pages 1-20, July.
- Bingley, P. & Walker, I., 2000.
"Housing Subsidies and Work Incentives in Great Britain,"
The Warwick Economics Research Paper Series (TWERPS)
559, University of Warwick, Department of Economics.
- Bingley, Paul & Walker, Ian, 2001. "Housing Subsidies and Work Incentives in Great Britain," Economic Journal, Royal Economic Society, vol. 111(471), pages C86-103, May.
- Nechyba, Thomas J, 1999. " School Finance Induced Migration and Stratification Patterns: The Impact of Private School Vouchers," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 1(1), pages 5-50.
- Epple, Dennis & Filimon, Radu & Romer, Thomas, 1993. "Existence of voting and housing equilibrium in a system of communities with property taxes," Regional Science and Urban Economics, Elsevier, vol. 23(5), pages 585-610, November.
- Hanushek Eric A & Sarpça Sinan & Yilmaz Kuzey, 2011. "Private Schools and Residential Choices: Accessibility, Mobility, and Welfare," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-34, August.
- Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
- Eric Hanushek & Kuzey Yilmaz, 2010.
"Household Location and Schools in Metropolitan Areas with Heterogeneous Suburbs: Tiebout, Alonso, and Government Policy,"
09-012, Stanford Institute for Economic Policy Research.
- Eric A. Hanushek & Kuzey Yilmaz, 2010. "Household Location and Schools in Metropolitan Areas with Heterogeneous Suburbs; Tiebout, Alonso, and Government Policy," NBER Working Papers 15915, National Bureau of Economic Research, Inc.
- Edward L. Glaeser & Matthew E. Kahn & Jordan Rappaport, 2000.
"Why Do the Poor Live in Cities?,"
NBER Working Papers
7636, National Bureau of Economic Research, Inc.
- Edward L. Glaeser & Matthew E. Kahn & Jordan Rappaport, 2000. "Why Do The Poor Live In Cities?," Harvard Institute of Economic Research Working Papers 1891, Harvard - Institute of Economic Research.
- Thomas J. Nechyba, 2000. "Mobility, Targeting, and Private-School Vouchers," American Economic Review, American Economic Association, vol. 90(1), pages 130-146, March.
- Benoît Schmutz, 2012.
"Public Housing Quotas and Segregation,"
- Tin Cheuk Leung & Kwok Ping Tsang, 2011.
"Love Thy Neighbor: Income Distribution and Housing Preferences,"
372011, Hong Kong Institute for Monetary Research.
- Leung, Tin Cheuk & Tsang, Kwok Ping, 2012. "Love thy neighbor: Income distribution and housing preferences," Journal of Housing Economics, Elsevier, vol. 21(4), pages 322-335.
- Leung, Tin Cheuk & Tsang, Kwok Ping, 2011. "Love Thy Neighbor: Income Distribution and Housing Preferences," MPRA Paper 32599, University Library of Munich, Germany.
- Reina, Vincent & Begley, Jaclene, 2014. "Will they stay or will they go: Predicting subsidized housing opt-outs," Journal of Housing Economics, Elsevier, vol. 23(C), pages 1-16.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gabriel Mihalache).
If references are entirely missing, you can add them using this form.