Estimating neighborhood choice models: Lessons from a housing assistance experiment

Sebastian Galiani, Alvin Murphy, Juan Pantano

Research output: Contribution to journalArticle

12 Citations (Scopus)

Abstract

We use data from a housing-assistance experiment to estimate a model of neighborhood choice. The experimental variation effectively randomizes the rents which households face and helps identify a key structural parameter. Access to two randomly selected treatment groups and a control group allows for out-of-sample validation of the model. We simulate the effects of changing the subsidy-use constraints implemented in the actual experiment. We find that restricting subsidies to even lower poverty neighborhoods would substantially reduce take-up and actually increase average exposure to poverty. Furthermore, adding restrictions based on neighborhood racial composition would not change average exposure to either race or poverty.

Original languageEnglish (US)
Pages (from-to)3385-3415
Number of pages31
JournalAmerican Economic Review
Volume105
Issue number11
DOIs
StatePublished - Nov 1 2015

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Poverty
Experiment
Choice models
Subsidies
Household
Rent
Structural parameters

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Estimating neighborhood choice models : Lessons from a housing assistance experiment. / Galiani, Sebastian; Murphy, Alvin; Pantano, Juan.

In: American Economic Review, Vol. 105, No. 11, 01.11.2015, p. 3385-3415.

Research output: Contribution to journalArticle

Galiani, Sebastian ; Murphy, Alvin ; Pantano, Juan. / Estimating neighborhood choice models : Lessons from a housing assistance experiment. In: American Economic Review. 2015 ; Vol. 105, No. 11. pp. 3385-3415.
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