The Welfare Cost of Hong Kong's Public Housing Programme

Abstract

Public housing is an important source of accommodation in Hong Kong. Subsidies to public housing are tied to the consumption of housing services. Consumer's consumption pattern will therefore be distorted, and a welfare loss incurred as compared to an equivalent cash transfer. This paper seeks to measure the extent to which tenants' benefit from public housing subsidies. A measure of net tenant benefit is used, which is based upon the Marshallian consumer surplus concept. The results indicate that Hong Kong's public housing programme has had a significant impact upon households' consumption patterns, and that the welfare loss is relatively low.

The Renegotiation of the Social Pact in Hong Kong: Economic Globalisation, Socio-economic Change, and Local Politics

“…1 According to Yu and Li's (1985) estimation in the mid-1980s, the transfer-in-kind to the average public housing tenant was equivalent to 70 per cent of the household's income. 2 According to a survey by Lau and Kuan (1988), 89.2 per cent of respondents believed that the government had the primary responsibility for solving social problems.…”

The benefits of the subsidized housing programs: public housing, rent certificates, and the housing voucher program

“…O lsen (1972) Kraft and Kraft. ( 1979) Yu and Li ( 1985), Sumka and Stegman (197 ), Mayo (1986), Bish (1969), and Struyk (19 ).…”

The benefits of the subsidized housing programs: public housing, rent certificates, and the housing voucher program

“…O lsen (1972) Kraft and Kraft. ( 1979) Yu and Li ( 1985), Sumka and Stegman (197 ), Mayo (1986), Bish (1969), and Struyk (19 ).…”