Incidence and Price Discrimination: Evidence from Housing Vouchers

Robert A. Collinson

New York University

Peter Ganong

Harvard University

June 9, 2013

What is the incidence of housing vouchers? In a frictionless, price-taking equilibrium, increased generosity of a narrowly-targeted subsidy causes increases in unit quality. However, search frictions may limit quality improve- ments and subsidies may accrue to landlords through price discrimination.

Analyzing a 2005 formula change for Housing Choice Vouchers, we estimate that a $1 increase in the county-wide price ceiling raised same-address voucher rents by 13-20 cents. For tenants who moved, quality improvements were minimal. Second, we find that a Dallas pilot which replaced a metro-wide price ceiling with ZIP-code-specific ceilings improved tenants’ chosen neighborhood quality by 0.2 standard deviations.

Number of Pages in PDF File: 62

Keywords: Incidence, Vouchers, Housing, Price Discrimination, Search Frictions

JEL Classification: H22, H53, R21, R31

working papers series

Download This Paper

Date posted: April 24, 2013 ; Last revised: June 10, 2013

Suggested Citation

Collinson, Robert A. and Ganong, Peter, Incidence and Price Discrimination: Evidence from Housing Vouchers (June 9, 2013). Available at SSRN: http://ssrn.com/abstract=2255799 or http://dx.doi.org/10.2139/ssrn.2255799

Contact Information

Robert A. Collinson
New York University ( email )
Bobst Library, E-resource Acquisitions
20 Cooper Square 3rd Floor
New York, NY 10003-711
United States
Peter Ganong (Contact Author)
Harvard University ( email )
1875 Cambridge Street
Cambridge, MA 02138
United States
Feedback to SSRN

Paper statistics
Abstract Views: 470
Downloads: 148
Download Rank: 116,372

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 0.266 seconds