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How (Not) to Allocate Affordable Housing

Author

Listed:
  • Nick Arnosti
  • Peng Shi

Abstract

We describe the wait-list procedure used in Providence and the lotteries used in New York City, and argue that despite their apparent differences, these systems should lead to similar outcomes. Neither approach effectively uses applicants' preferences to guide the allocation. As a result, tenants may frequently be assigned to apartments far from their family or workplace. We describe minor changes to each system that would give applicants a choice of apartments. Although these changes may shift which families receive housing, we argue that this can largely be offset by using observable characteristics to target those most in need.

Suggested Citation

  • Nick Arnosti & Peng Shi, 2019. "How (Not) to Allocate Affordable Housing," AEA Papers and Proceedings, American Economic Association, vol. 109, pages 204-208, May.
    • Handle: RePEc:aea:apandp:v:109:y:2019:p:204-08
    Note: DOI: 10.1257/pandp.20191031
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    File URL: https://www.aeaweb.org/doi/10.1257/pandp.20191031
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    File URL: https://www.aeaweb.org/doi/10.1257/pandp.20191031.ds
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    Citations

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    Cited by:

    1. Mohammad Akbarpour & Yeganeh Alimohammadi & Shengwu Li & Amin Saberi, 2021. "The Value of Excess Supply in Spatial Matching Markets," Papers 2104.03219, arXiv.org.

    More about this item

    JEL classification:

    • D45 - Microeconomics - - Market Structure, Pricing, and Design - - - Rationing; Licensing
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R28 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Government Policy
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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