References

How Do Changes in Housing Voucher Design Affect Rent and Neighborhood Quality?

“…In contrast to a uniform increase, tilting the rent ceiling so that it is higher in high-quality neighborhoods and lower in low-quality neighborhoods may be a cost-effective way to raise neighborhood quality. 4 Intuitively, the status quo penalizes searching in high-quality neighborhoods and the tilting policy raises optimal neighborhood quality by reducing this penalty. However, because the average rent ceiling does not increase, the scope for additional price discrimination is limited.…”

“…In online Appendix A, we theoretically analyze the impact of this policy using a model in which voucher holders face a trade-off between finding a unit in a high-quality neighborhood and finding a unit at all, and landlords can post higher rents in hopes of leasing to price-insensitive voucher holders. In such a model, whether landlords or tenants benefit more is ambiguous 4. The model in online Appendix A predicts that tilting the rent ceiling is a cost-effective way to raise neighborhood quality.…”