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  4. May 2019
  5. How (Not) to Allocate Affordable Housing

AEA Papers and Proceedings

ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)

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How (Not) to Allocate Affordable Housing

  • Nick Arnosti
  • Peng Shi
AEA Papers and Proceedings
vol. 109, May 2019
(pp. 204–08)
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Abstract

We describe the wait-list procedure used in Providence and the lotteries used in New York City, and argue that despite their apparent differences, these systems should lead to similar outcomes. Neither approach effectively uses applicants' preferences to guide the allocation. As a result, tenants may frequently be assigned to apartments far from their family or workplace. We describe minor changes to each system that would give applicants a choice of apartments. Although these changes may shift which families receive housing, we argue that this can largely be offset by using observable characteristics to target those most in need.

Citation

Arnosti, Nick, and Peng Shi. 2019. "How (Not) to Allocate Affordable Housing." AEA Papers and Proceedings, 109: 204–08. DOI: 10.1257/pandp.20191031

Additional Materials

JEL Classification

  • D45 Rationing; Licensing
  • H75 State and Local Government: Health; Education; Welfare; Public Pensions
  • I38 Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
  • R21 Urban, Rural, Regional, Real Estate, and Transportation Economics: Housing Demand
  • R28 Urban, Rural, Regional, Real Estate, and Transportation Economics: Government Policy
  • R38 Production Analysis and Firm Location: Government Policy