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

Erin T. Mansur, John Quigley, Steven Raphael, and Eugene Smolensky

Journal of Urban Economics, Volume 52, Issue 2, September 2002, pages 316-340.
Berkeley Program on Housing and Urban Policy Working Paper W00-006.

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 consequences 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.