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Examining Policies to Reduce Homelessness Using a General Equilibrium Model of the Housing Market

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  • Mansur, Erin
  • 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.

Suggested Citation

  • Mansur, Erin & Quigley, John M. & Raphael, Steven & Smolensky, Eugene, 2003. "Examining Policies to Reduce Homelessness Using a General Equilibrium Model of the Housing Market," Berkeley Program on Housing and Urban Policy, Working Paper Series qt11j6s62t, Berkeley Program on Housing and Urban Policy.
    • Handle: RePEc:cdl:bphupl:qt11j6s62t
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    References listed on IDEAS

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    1. 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.
    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. Anas, Alex & Arnott, Richard J., 1997. "Taxes and allowances in a dynamic equilibrium model of urban housing with a size--quality hierarchy," Regional Science and Urban Economics, Elsevier, vol. 27(4-5), pages 547-580, August.
    4. Anas, Alex & Arnott, Richard J., 1993. "A fall in construction costs can raise housing rents," Economics Letters, Elsevier, vol. 41(2), pages 221-224.
    5. O'Flaherty, B., 1995. "An Economic Theory of Homelessness and Housing," Journal of Housing Economics, Elsevier, vol. 4(1), pages 13-49, March.
    6. 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.
    7. 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.
    8. Sweeney, James L, 1974. "Quality, Commodity Hierarchies, and Housing Markets," Econometrica, Econometric Society, vol. 42(1), pages 147-167, January.
    9. 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.
    10. 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.
    11. 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.
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    Cited by:

    1. 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].
    2. Ning Zhang, 2022. "In-kind housing transfers and labor supply: a structural approach," Economics Series Working Papers 992, University of Oxford, Department of Economics.
    3. J Ceasar Aguma, 2022. "A Matching Mechanism for Provision of Housing to the Marginalized," Papers 2203.01477, arXiv.org.
    4. Alexandra Kröll & Oliver Farhauer, 2012. "Examining the Roots of Homelessness - The Impact of Regional Housing Market Conditions and the Social Environment on Homelessness in Germany," ERSA conference papers ersa12p370, European Regional Science Association.
    5. Glaeser, Edward L., 2014. "Understanding housing: The intellectual legacy of John Quigley," Regional Science and Urban Economics, Elsevier, vol. 47(C), pages 3-12.
    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.
    7. Ayse Imrohoroglu & Kai Zhao, 2024. "Homelessness," Opportunity and Inclusive Growth Institute Working Papers 103, Federal Reserve Bank of Minneapolis.
    8. 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.
    9. 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.
    10. Alexandra Kröll & Oliver Farhauer, 2016. "Examining homelessness in Germany: The impact of regional housing market conditions on homelessness in North Rhine-Westphalia, Germany," Papers in Regional Science, Wiley Blackwell, vol. 95, pages 51-69, March.
    11. Olsen, Edgar O. & Zabel, Jeffrey E., 2015. "US Housing Policy," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 887-986, Elsevier.
    12. 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.
    13. 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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