Berkeley Program on Housing and Urban Policy
Examining Policies to Reduce Homelessness Using a General Equilibrium Model of the Housing Market
- Author(s): Mansur, Erin
- Quigley, John M.
- Raphael, Steven
- Smolensky, Eugene
- et al.
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.