Threshold effects and the expected benefits of attracting middle‐income households to the central city

Abstract

This article looks at the two primary expected benefits of efforts to bring back, or retain, middle‐income households in the central city: (1) improved fiscal conditions caused by increasing the tax base and (2) decreased socioeconomic isolation of central‐city low‐income households. We examine the causal linkages reputed to produce these two benefits in light of the relatively limited relevant theoretical and empirical research.

Although stressing that this work is only tentative and intended to be provocative, we cautiously conclude that thresholds matter. That is, it is likely that the number of middle‐income households in a given area must exceed a certain threshold for significant benefits to accrue. The geographic scale of this area, the threshold that applies, and the time needed for benefits to appear depend on the particular causal linkage at issue. In the last section, we derive implications for research and policy evaluation.     

Nativity differences in neighborhood quality among New York city households

Abstract

This article adds to the literature on locational attainment of immigrants by evaluating how immigrant households in New York City compare with native‐born households with respect to neighborhood characteristics. It also examines whether the relationship between immigrant status and neighborhood quality varies by race/ethnicity and place of birth.

Overall, foreign‐born households are more likely than native‐born households to live in neighborhoods with less access to medical care, higher rates of tuberculosis, and higher concentrations of poverty. Multivariate analyses reveal that all but one of these disadvantages disappear for foreign‐born households as a group. However, island‐born Puerto Ricans and immigrants—especially Dominicans, Caribbeans and Africans, and Latin Americans—are more likely to reside in lower‐quality neighborhoods than native‐born white households. Equally important, native‐born blacks and Hispanics are also disproportionately disadvantaged relative to native‐born whites, suggesting that a racial hierarchy exists in the locational attainment of households in New York City.     

On the equity effects of taxing imputed rent: Evidence from Australia

Abstract

Taxation of net imputed rent from owner‐occupied housing (and mortgage interest deductibility) has been advocated in Australia on grounds of both efficiency and equity. The current tax system (no taxation or deductibility) favors owner‐occupied housing over business investments, and in the owner‐occupied sector it favors high‐income, low‐debt households over others. Nevertheless, imputed rent taxation has been criticized on the empirical grounds that its direct burden would fall more heavily on low‐income households than high‐income households.

Using micro‐level data from the 1986 Income Distribution Survey, we show that the burden does not fall more heavily on low‐income households when net imputed rent is included in owners’ incomes and when life cycle effects are controlled for. Moreover, for married couples aged 25 to 54, the taxation of imputed rental income would be not only progressive, but more progressive than the taxation of other household income.     

Crowd‐Out or Affordability? The Lifeline Expansion's Effect on Wireless Service Spending

Public subsidization of private goods often leads to crowd‐out, reducing private spending. This effect is intended for a policy such as the 2008 Lifeline phone subsidy expansion, which aimed to increase affordable access to services. I examine the effects of this policy on households’ self‐reported wireless phone service spending in the Consumer Expenditure Survey. Using state‐level variation in policy implementation and triple‐differences event study methods, I estimate that the expansion reduced households’ wireless service spending by more than 100 percent of subsidy payments. I document that the expansion led to a separate, competitive market for providers catering to low‐income households. Consequently, higher‐quality subsidized services crowded out lower‐quality unsubsidized options, saving households more than an equivalent cash transfer. This highlights how market segmentation and competition can magnify a targeted subsidy's impact.     

Poverty and profit in Central American forest policies

The failure of forestry to contribute to poverty reduction in Central America is due to public policies which inhibit its profitability. Absence of public regulation of harvesting and competing subsidies to agriculture keep forestry stumpage prices artificially low. This encourages destruction of the forest resource, which damages both the environment and the potential to reduce poverty. A comparison of Costa Rica and Honduras reveals two dissimilar approaches toward forest policy. While Costa Rica attempts to raise producer and grower stumpage prices by tax credits, soft loans and differential species fees, Honduras enforces price ceilings and uses centralized authority to control forest production and export. Both countries exhibit weaknesses in the management control cycle of programming, budgeting, implementing and evaluating their forest policies. Yet the Costa Rican approach has increased stumpage prices already, which bodes well for their forest sector. By contrast, the major beneficiary of Honduran forest policy has been COHDEFOR, the state enterprise responsible for forestry management, controlling production, and running its national system of agroforestry cooperatives. Despite greater public authority and resources than the Costa Rican forest service (DGF), the Honduran forest policy is not likely to increase producer profitability or reduce poverty in the near future.     

Nativity status and racial/ethnic differences in access to quality housing: Does homeownership bring greater parity?

Abstract

In this article, we use data from the 2001 American Housing Survey to evaluate whether nativity‐status differences in housing conditions vary by tenure and whether nativity status or race/ethnicity plays a more important role in determining housing conditions. Overall, when compared with native‐born households, recently arrived immigrant households are significantly more likely to be crowded, but either as likely or significantly less likely to live in poorer‐quality housing.

Further analysis revealed, however, that race/ethnicity is a stronger indicator than immigrant status in predicting housing outcomes. Among homeowners, black and Hispanic households, regardless of nativity status, exhibited lower‐quality housing outcomes than native‐born and, frequently, foreign‐born whites. Thus, we find that minorities are doubly disadvantaged: They are less likely to attain homeownership than whites, and once they do, they are almost always significantly more likely to live in poorer‐quality housing.     

The nonprofit advantage: Producing quality in thick and thin child care markets

Nonprofit child care centers are frequently observed to produce child care which is, on average, of higher quality than care provided in commercial child care centers. In part, this nonprofit advantage is due to different input choices made by nonprofit centers—lower child‐staff ratios, better‐educated staff and directors, higher rates of professional development for staff. Nonprofit centers may have an additional productivity advantage, due to unmeasured staff motivation and abilities or to better management of the production of good‐quality child care. However, where nonprofit and for‐profit child care firms compete in the same local markets, we speculate that this extra advantage should only appear where demand is sufficiently “thick” to permit a quality differentiation strategy to be financially viable for nonprofits. We estimate the effect of nonprofit status on quality, controlling for differences in financial resources available to the center, differences in the clientele served, and differences in staff and center inputs. In this conventional examination, nonprofit status has a moderately positive impact on quality. However, when we account for the unobserved heterogeneity and separate markets into “thick” and “thin,” a particularly strong nonprofit advantage is found in thick markets, but no productivity advantage for nonprofits is found in thin markets. This finding suggests a clear role for nonprofit organizations in improving the cost‐quality trade‐off faced by parents, but also identifies the market conditions that affect the ability of nonprofit managers to employ this advantage. © 2009 by the Association for Public Policy Analysis and Management.     

Why Don't Housing Choice Voucher Recipients Live Near Better Schools? Insights from Big Data

Housing choice vouchers provide low‐income households with additional income to spend on rental housing in the private market. The assistance vouchers provide is substantial, offering the potential to dramatically expand the neighborhoods—and associated public schools—that low‐income households can reach. However, existing research on the program suggests that housing choice voucher holders live in neighborhoods with schools that are no better than those accessible to other households with similar incomes. Households, in other words, do not seem to spend the additional income provided by the voucher to access better schools. In this analysis we rely on a large‐scale administrative data set to explore why voucher households typically do not live near to better schools, as measured by school‐level proficiency rates. We combine confidential administrative data from the Department of Housing and Urban Development on 1.4 million housing choice voucher holders in 15 states, with school‐level data from 5,841 different school districts, to examine why the average housing voucher holder does not live near to higher‐performing schools than otherwise similar households without vouchers. Specifically, we use the large‐scale administrative data set to test whether voucher holders living in areas with good schools nearby and slack housing markets move toward better schools when schools become salient for them—that is, when their oldest child becomes school eligible. We take advantage of the thick sample of households with young children provided through our administrative data to implement both a household fixed effects and a regression discontinuity design. Together these analyses shed light on whether voucher households are more likely to move toward better schools when schools are most relevant, and how market conditions shape that response. We find that families with vouchers are more likely to move toward a better school in the year before their oldest child meets the eligibility cutoff for kindergarten, suggesting salience matters. Further, the magnitude of the effect is larger in metropolitan areas with a relatively high share of affordable rental units located near high‐performing schools and in neighborhoods in close proximity to higher‐performing schools. Results suggest that, if given the appropriate information and opportunities, more voucher families would move to better schools when their children reach school age.     

按要素分配假设中要素贡献、所有权的内涵--与白暴力教授对要素价值论评说的商榷

应辩证地看萨伊生产要素命题,明确劳动生产率决定因素的具体作用.以"贡献"决定剩余分配所依据的是产权.如果有一个恰当的条件限定,按要素分配和按劳分配两种学说并不冲突.     

Continuity,change, and priorities: The quality and use of regulatory analysis across US administrations

This paper compares the quality and use of regulatory analysis accompanying economically significant regulations proposed by US executive branch agencies in 2008, 2009, and 2010. We find that the quality of regulatory analysis is generally low, but varies widely. Budget regulations, which define how the federal government will spend money or collect revenues, have much lower‐quality analysis than other regulations. The Bush administration's “midnight” regulations finalized between Election Day and Inauguration Day, along with other regulations left for the Obama administration to finalize, tended to have lower‐quality analysis. Most differences between the Bush and Obama administrations depend on agencies' policy preferences. More conservative agencies tended to produce better analysis in the Obama administration, and more liberal agencies tended to do so in the Bush administration. This suggests that agencies more central to an administration's policy priorities do not have to produce as good an analysis to get their regulations promulgated.     

Is small beautiful? Village level taxation of natural resources in Tanzania

This article examines collection of natural resources revenue by village governments in Tanzania as part of a decentralisation reform. An analysis of empirical data in the form of taxation records from 14 villages, which collect and retain revenues on natural resources utilisation suggests that decentralising revenue collection to the lowest local government tier may yield: (i) considerable increases in revenue collection; (ii) increased transparency in public finances through requirements that village governments document their incomes and expenditures to the villagers; and (iii) a financial surplus that is used to finance public services at the village level. The evidence presented in this article suggests that decentralising taxation to the lowest local government tier may be a viable approach to enhance revenue collection on the utilisation of relatively low value natural resources, and assure that a share of the collected revenue is used to finance public services. Copyright © 2007 John Wiley & Sons, Ltd.     

Divided Government,Legislative Productivity,and Policy Change in the USA and France

The concept of “divided government” is more complicated than scholars have allowed. In the USA, truly unified government, where the president enjoys a filibuster‐proof majority in the Senate as well as a majority in the House, is rare. In France, truly unified government has been more common, but divided government has also occurred several times. Democratic governance requires that parties address important issues and they do so regardless of the patterns of institutional control. Nevertheless, policy changes or important laws are affected by the higher level of institutional friction associated with divided government. Looking at both the USA and France, we find that periods of unified government show higher levels of production of important laws in the USA, but we find no difference for overall legislative productivity.     

Early Adopters of Solar Panels in Developing Countries: Evidence from Tanzania

Who pioneers the adoption of solar home systems as a source of power in developing countries? While many scholars of electrification praise off‐grid options, evidence on their adoption from nationally representative surveys is lacking. We test existing and new hypotheses using the 2007 Tanzanian National Household Budget Survey. Since the survey is nationally representative and has more than 10,000 respondent households, it is ideal for our purposes. We find modest support for the notion that wealthier households adopt more readily than poorer ones. Surprisingly, electrified households adopt solar home systems more readily than other households, suggesting that solar home systems provide backup power. We further find that larger households adopt more readily than smaller ones and that a rural location or high education levels do not predict solar power use. These findings suggest that new policies are needed to promote solar home systems in poor and rural areas, where their development effectiveness is maximal.     

Where the homeless come from: A study of the prior address distribution of families admitted to public shelters in New York City and Philadelphia

Abstract

This study investigates hypotheses regarding the association of census tract variables with the risk for homelessness. We used prior address information reported by families entering emergency shelters in two large U.S. cities to characterize the nature ofthat distribution.

Three dense clusters of homeless origins were found in Philadelphia and three in New York City, accounting for 67 percent and 61 percent of shelter admissions and revealing that homeless families’ prior addresses are more highly concentrated than the poverty distribution in both cities. The rate of shelter admission is strongly and positively related to the concentration of poor, African‐American, and female‐headed households with young children in a neighborhood. It is also correlated with fewer youth, elderly, and immigrants. Such areas have higher rates of unemployment and labor force nonpartici‐pation, more housing crowding, more abandonment, higher rates of vacancy, and higher rent‐to‐income ratios than other areas.     

The environmental impact of suburbanization

The U.S. population is increasingly spreading out, moving to the suburbs, and migrating from the Rust Belt to the Sun Belt. This paper uses recent household‐level data sets to study some of the environmental consequences of population suburbanization. It measures the increase in household driving, home fuel consumption, and land consumption brought about by population dispersion. Suburban households drive 31 percent more than their urban counterparts, and western households drive 35 percent more miles than northeastern households. Despite increased vehicle dependence, local air quality has not been degraded in sprawling areas, thanks to emissions controls. Technological innovation can mitigate the environmental consequences of resource‐intensive suburbanization. © 2000 by the Association for Public Policy Analysis and Management.     

The Low‐Income Housing Tax Credit An Analysis of the First Ten Years

Abstract

The Low‐Income Housing Tax Credit (LIHTC) has been the de facto federal rental housing production program since its creation in the Tax Reform Act of 1986. In this article, using a detailed database on 2,554 LIHTC projects, we analyze the costs of building these projects, where they are built, their financial viability, whom they serve, who finances them, and the size of the subsidies provided to them.

The LIHTC is a flexible program that has built different types of housing in various markets. While LIHTC projects serve low‐ and moderate‐income households, their rents are beyond the reach of many poor households without additional subsidy. Revenues just cover costs for many LIHTC projects. Over time, considerably more of each tax‐credit dollar has ended up in the projects, and returns to equity investors have dropped significantly, perhaps reflecting an increased understanding of project risks. We estimate that LIHTC projects developed by nonprofits are 20.3 percent more expensive than those developed by for‐profits.     

Management of forest resources in India

Management of forest resources is a major problem area in developing countries. Basing discussion of the problem on the situation in India this article recognizes the importance of a rational pricing policy but also argues that forest administration has to be strengthened. Regeneration of forest resources has to be stimulated by price improvements and encouraging investment but regeneration and rural development involving social and agro forestry are also required. Forest administration has to be developed to cope with these different requirements. The article questions the argument concerning institution building for development forestry advanced by Guess (1982).     

A preliminary assessment of the new home seller capital gains law

Abstract

In August 1997, the capital gains law was changed to enable most sellers to move down in price without incurring a tax liability. The previous law was critiqued as detrimental to cities by promoting out‐migration to higher‐priced homes; it was asserted that the requirement that sellers buy a home equal to or greater than the value of the one they sold to defer tax liability obstructed movement down in price. This study asked whether movement down in price increased in four Ohio cities after the law was changed and whether movement out of the central cities decreased and movement in from the suburbs increased.

Statistically significant change in movement down was found in only one city. Movement up in price and outward dominated all four areas. The study produced no direct evidence of the factors that influenced seller‐buyer move decisions. The process of life‐course change—younger households moving up to larger, more expensive homes and older households moving down to smaller, less expensive properties—was probably the driving force.     

Effects of Financial Incentives on Saving Outcomes and Material Well‐Being: Evidence From a Randomized Controlled Trial in Uganda

The use of savings products to promote financial inclusion has increasingly become a policy priority across sub‐Saharan Africa, yet little is known about how families respond to varying levels of savings incentives and whether the promotion of incentivized savings in low‐resource settings may encourage households to restrict expenditures on basic needs. Using data from a randomized controlled trial in Uganda, we examine: (1) whether low‐income households enrolled in an economic‐empowerment intervention consisting of matched savings, workshops, and mentorship reduced spending on basic needs and (2) how varied levels of matching contributions affected household savings and consumption behavior. We compared primary school‐attending AIDS‐affected children (N = 1,383) randomized to a control condition with two intervention arms with differing savings‐match incentives: 1:1 (Bridges) and 1:2 (Bridges PLUS). We found that: (1) 24 months post‐intervention initiation, children in Bridges and Bridges PLUS were more likely to have accumulated savings than children in the control condition; (2) higher match incentives (Bridges PLUS) led to higher deposit frequency but not higher savings in the bank; (3) intervention participation did not result in material hardship; and (4) in both intervention arms, participating families were more likely to start a family business and diversify their assets.