Economic Impacts of Subsidized Housing Location

42 Pages Posted: 1 May 1998

See all articles by Michael P. Johnson

Michael P. Johnson

Carnegie Mellon University - H. John Heinz III School of Public Policy and Management

Arthur P. Hurter

Northwestern University - Department of Industrial Engineering and Management Sciences

Date Written: January 13, 1998

Abstract

Programs such as HUD's Moving to Opportunity are examples of an increased emphasis on use of Section 8 certificates and vouchers for acquisition of market-rate subsidized housing in place of traditional public housing. Research on the social impacts of family relocation from public housing in the inner city to market-rate housing in integrated neighborhoods have indicated favorable results. However, little research has been done on the economic impacts of such a move using standard microeconomic framework.

In this paper, the short-term economic effects upon various groups of a low-income family's hypothetical move from public housing to Section 8 rental housing are evaluated. We hypothesize a spatial character for these impacts, and a bias in benefits calculation due to the economic diversity of a large metropolitan area. Our model is implemented using data from the Chicago region. Preliminary results support our hypotheses, and indicate that there is a potential tradeoff between tenant benefits, housing subsidies from society and housing integration.

JEL Classification: H42, I38, R21, R31, R53

Suggested Citation

Johnson, Michael P. and Hurter, Arthur P., Economic Impacts of Subsidized Housing Location (January 13, 1998). Available at SSRN: https://ssrn.com/abstract=82308 or http://dx.doi.org/10.2139/ssrn.82308

Michael P. Johnson (Contact Author)

Carnegie Mellon University - H. John Heinz III School of Public Policy and Management ( email )

Pittsburgh, PA 15213-3890
United States
412-268-4270 (Phone)
412-268-7036 (Fax)

Arthur P. Hurter

Northwestern University - Department of Industrial Engineering and Management Sciences ( email )

2225 N. Campus Drive 3024 MLS Building
Evanston, IL 60208-3119
United States
847-491-3414 (Phone)
847-491-8005 (Fax)

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