Who Wants Affordable Housing in Their Backyard? An Equilibrium Analysis of Low-Income Property Development

• 成果类型: Article
• 署名作者: Diamond, Rebecca; McQuade, Tim
• 署名单位: Stanford University
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/701354
• 发表日期: 2019
• 页码: 1063-1117
• 关键词: GENERALIZED C-P; tax credit; MARKET

摘要

We nonparametrically estimate spillovers of properties financed by the Low Income Housing Tax Credit (LIHTC) onto neighborhood residents by developing a new difference-in-differences style estimator. LIHTC development revitalizes low-income neighborhoods, increasing house prices 6.5 percent, lowering crime rates, and attracting racially and income diverse populations. LIHTC development in higher-income areas causes house price declines of 2.5 percent and attracts lower-income households. Linking these price effects to a hedonic model of preferences, LIHTC developments in low-income areas cause aggregate welfare benefits of $116 million. Affordable housing development acts like a place-based policy and can revitalize low-income communities.