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In Sinai and Waldfogel’s (2005) paper, “Do low-income housing subsidies increase the occupied housing stock?”, the effect of housing subsidies on the supply of housing stock is dissected. The purpose of the authors’ research was to determine if the quantity of occupied housing per capita increases due to subsidized housing. Are more people finding housing or are they just being housed less densely? However, if subsidized housing is crowding out low-income housing of similar quality instead, then the housing policies have little effect on housing consumption. Of two different types of housing subsidy programs, which is most effective? Sinai and Waldfogel delve into the different types of subsidies, propose a simple framework for analyzing their effect, define and analyze the data, and provide evidence of the impact that subsidized housing policies have on housing consumption as a whole.
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O’Sullivan A. (2012), Urban Economics, Boston: Irwin/McGraw-Hill, 8 th edition.
Sinai, T. and J. Waldfogel (2005), “Do low-income housing subsidies increase the occupied housing stock?” Journal of Public Economics 89, 2137-2164.
- Low-Income Housing Subsidies