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Decision Support for a Housing Mobility Program Using a Multiobjective Optimization Model

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  • Michael P. Johnson

    (H. John Heinz III School of Public Policy and Management, Carnegie Mellon University, Pittsburgh, Pennsylvania 15213)

  • Arthur P. Hurter

    (Department of Industrial Engineering and Management Sciences, Northwestern University, Evanston, Illinois 60208)

Abstract

As result of public housing reform and welfare reform, the operating environment of public housing authorities has changed significantly. Given these policy initiatives, housing mobility programs represent viable strategies for providing public housing residents with access to economically healthy, integrated neighborhoods. In this paper we present a decision support methodology to assist the design of housing mobility programs. This methodology incorporates economic models for estimating dollar-valued impacts associated with tenant relocation, and a multiobjective optimization model for generating alternative relocation schemes associated with various objective function weights. Using data for Lake County, Illinois and Chicago, we demonstrate that nondominated allocations represent significant trade-offs between dollar-valued and non-dollar-valued policy objectives; existing distributions of subsidized housing represent suboptimal solutions to the housing relocation problem; and increases in available rental housing can result in housing dispersion schemes that have positive net economic benefits relative to the status quo.

Suggested Citation

  • Michael P. Johnson & Arthur P. Hurter, 2000. "Decision Support for a Housing Mobility Program Using a Multiobjective Optimization Model," Management Science, INFORMS, vol. 46(12), pages 1569-1584, December.
    • Handle: RePEc:inm:ormnsc:v:46:y:2000:i:12:p:1569-1584
    DOI: 10.1287/mnsc.46.12.1569.12077
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    References listed on IDEAS

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    1. Olsen, Edgar O. & Barton, David M., 1983. "The benefits and costs of public housing in New York City," Journal of Public Economics, Elsevier, vol. 20(3), pages 299-332, April.
    2. Jossef Perl & Peng-Kuan Ho, 1990. "Public Facilities Location under Elastic Demand," Transportation Science, INFORMS, vol. 24(2), pages 117-136, May.
    3. Michael P. Johnson & Arthur P. Hurter, 1997. "An Optimization Model for Location of Subsidized Housing in Metropolitan Areas," JCPR Working Papers 12, Northwestern University/University of Chicago Joint Center for Poverty Research.
    4. Donald C. Guy & John L. Hysom & Stephen R. Ruth, 1985. "The Effect of Subsidized Housing on Values of Adjacent Housing," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 13(4), pages 378-387, December.
    5. Marsh, Michael T. & Schilling, David A., 1994. "Equity measurement in facility location analysis: A review and framework," European Journal of Operational Research, Elsevier, vol. 74(1), pages 1-17, April.
    6. Michael P. Johnson & Arthur P. Hurter, 1999. "articles: Economic impacts of subsidized housing relocation," Papers in Regional Science, Springer;Regional Science Association International, vol. 78(3), pages 265-295.
    7. Revelle, Charles, 1987. "Urban public facility location," Handbook of Regional and Urban Economics, in: E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 2, chapter 27, pages 1053-1096, Elsevier.
    8. DeSalvo, Joseph S, 1975. "Benefits and Costs of New York City's Middle-Income Housing Program," Journal of Political Economy, University of Chicago Press, vol. 83(4), pages 791-805, August.
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    Cited by:

    1. Tommi Ekholm & Erin Baker, 2022. "Multiple Beliefs, Dominance and Dynamic Consistency," Management Science, INFORMS, vol. 68(1), pages 529-540, January.

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