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Examining policies to reduce homelessness using a general equilibrium model of the housing market

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  • Mansur, Erin T.
  • Quigley, John M.
  • Raphael, Steven
  • Smolensky, Eugene

Abstract

In this paper, we use a general equilibrium simulation model to assess the potential impacts on homelessness of various housing-market policy interventions. We calibrate the model to the four largest metropolitan areas in California. We explore the welfare con- sequences and the effects on homelessness of three housing-market policy interventions: extending housing vouchers to all low-income households, subsidizing all landlords, and subsidizing those landlords who supply low-income housing. Our results suggest that a very large fraction of homelessness can be eliminated through increased reliance upon well-known housing subsidy policies.
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  • Mansur, Erin T. & Quigley, John M. & Raphael, Steven & Smolensky, Eugene, 2002. "Examining policies to reduce homelessness using a general equilibrium model of the housing market," Journal of Urban Economics, Elsevier, vol. 52(2), pages 316-340, September.
  • Handle: RePEc:eee:juecon:v:52:y:2002:i:2:p:316-340
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    References listed on IDEAS

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    1. Anas Alex & Arnott Richard J., 1993. "Technological Progress in a Model of the Housing - Land Cycle," Journal of Urban Economics, Elsevier, vol. 34(2), pages 186-206, September.
    2. John M. Quigley & Steven Raphael & Eugene Smolensky, 2001. "Homeless In America, Homeless In California," The Review of Economics and Statistics, MIT Press, vol. 83(1), pages 37-51, February.
    3. Hanushek, Eric A & Quigley, John M, 1980. "What Is the Price Elasticity of Housing Demand?," The Review of Economics and Statistics, MIT Press, vol. 62(3), pages 449-454, August.
    4. Quigley, John M. & Raphael, Steven & Smolensky, Eugene, 2001. "Homelessness in California," Berkeley Program on Housing and Urban Policy, Working Paper Series qt2pg3f4ns, Berkeley Program on Housing and Urban Policy.
    5. Sweeney, James L., 1974. "A commodity hierarchy model of the rental housing market," Journal of Urban Economics, Elsevier, vol. 1(3), pages 288-323, July.
    6. Troutman, William Harris & Jackson, John D & Ekelund, Robert B, Jr, 1999. "Public Policy, Perverse Incentives, and the Homeless Problem," Public Choice, Springer, vol. 98(1-2), pages 195-212, January.
    7. Honig, Marjorie & Filer, Randall K, 1993. "Causes of Intercity Variation in Homelessness," American Economic Review, American Economic Association, vol. 83(1), pages 248-255, March.
    8. Anas, Alex & Arnott, Richard J., 1993. "A fall in construction costs can raise housing rents," Economics Letters, Elsevier, vol. 41(2), pages 221-224.
    9. Sweeney, James L, 1974. "Quality, Commodity Hierarchies, and Housing Markets," Econometrica, Econometric Society, vol. 42(1), pages 147-167, January.
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    Cited by:

    1. Glaeser, Edward L., 2014. "Understanding housing: The intellectual legacy of John Quigley," Regional Science and Urban Economics, Elsevier, vol. 47(C), pages 3-12.
    2. Boehm, Thomas P. & Schlottmann, Alan, 2006. "A comparison of household mobility for owned manufactured, traditional owned, and rental units using the American Housing Survey," Journal of Housing Economics, Elsevier, vol. 15(2), pages 126-142, June.
    3. John M. Quigley & Steven Raphael & Eugene Smolensky, 2001. "Homeless In America, Homeless In California," The Review of Economics and Statistics, MIT Press, vol. 83(1), pages 37-51, February.
    4. Quigley, John M. & Raphael, Steven & Smolensky, Eugene, 2001. "Homelessness in California," Berkeley Program on Housing and Urban Policy, Working Paper Series qt2pg3f4ns, Berkeley Program on Housing and Urban Policy.
    5. Kröll, Alexandra & Farhauer, Oliver, 2012. "Examining the roots of homelessness: The impact of regional housing market conditions and the social environment on homelessness in North Rhine-Westphalia, Germany," IAB Discussion Paper 201213, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Early, Dirk W., 2004. "The determinants of homelessness and the targeting of housing assistance," Journal of Urban Economics, Elsevier, vol. 55(1), pages 195-214, January.
    7. Olsen, Edgar O. & Zabel, Jeffrey E., 2015. "US Housing Policy," Handbook of Regional and Urban Economics, Elsevier.
    8. O'Flaherty, Brendan & Wu, Ting, 2006. "Fewer subsidized exits and a recession: How New York City's family homeless shelter population became immense," Journal of Housing Economics, Elsevier, vol. 15(2), pages 99-125, June.

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