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Does Increased Funding for Homeless Programs Reduce Chronic Homelessness?

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  • Shawn Moulton
Abstract
This article tests whether programs that provide housing assistance to homeless people can reduce chronic homelessness. I analyze data from the Department of Housing and Urban Development for 130 communities across the United States over the period 2005 to 2007. Because the amount of federal money allocated to a community to combat homelessness may depend on unobserved characteristics of that community, I estimate a fixed‐effects model that estimates the effect of new federal homeless funding on chronic homelessness. I find that the first‐year cost of moving one chronically homeless person into permanent supportive housing is $55,600. An analysis of new funding to specific types of homeless programs indicates that programs that provide long‐term housing and services to homeless people with disabilities drives this relationship.

Suggested Citation

  • Shawn Moulton, 2013. "Does Increased Funding for Homeless Programs Reduce Chronic Homelessness?," Southern Economic Journal, John Wiley & Sons, vol. 79(3), pages 600-620, January.
    • Handle: RePEc:wly:soecon:v:79:y:2013:i:3:p:600-620
    DOI: 10.4284/0038-4038-2010.309
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    References listed on IDEAS

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    1. Early Dirk W. & Olsen Edgar O., 2002. "Subsidized Housing, Emergency Shelters, and Homelessness: An Empirical Investigation Using Data from the 1990 Census," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 2(1), pages 1-36, August.
    2. 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.
    3. John M. Quigley & Steven Raphael, 2001. "The Economics Of Homelessness: The Evidence From North America," European Journal of Housing Policy, Taylor and Francis Journals, vol. 1(3), pages 323-336.
    4. Petra E. Todd & Kenneth I. Wolpin, 2007. "The Production of Cognitive Achievement in Children: Home, School, and Racial Test Score Gaps," Journal of Human Capital, University of Chicago Press, vol. 1(1), pages 91-136.
    5. John M. Quigley, Steven Raphael, 2001. "The Economics Of Homelessness: The Evidence From North America," European Journal of Housing Policy, Taylor and Francis Journals, vol. 1(3), pages 323-336, December.
    6. 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.
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