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Open Access Publications from the University of California

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


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.

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