IDEAS home Printed from https://ideas.repec.org/a/taf/rurpxx/v16y2023i5p774-796.html
   My bibliography  Save this article

Housing allowance and the perverse theory of housing outcomes

Author

Listed:
  • Wasay Majid

Abstract

This paper challenges economic theory applied within empirical literature on housing allowances for rent. The arguments challenged are (i) subsidy is a price drop, which increases demand, (ii) allowance is income, where housing is a normal good, which raises demand, (iii) higher subsidy increases willingness to pay more for housing, and (iv) allowance incentivises optimal consumption to their highest achievable value. In practice, tenants remain unaware of price discounts for the distribution of rents, rendering revealed preference/demand theory inconsistent. Not incomes, allowances (in New Zealand) unfold as a(regressive) negative income and wealth tax unique to each recipients resources.

Suggested Citation

  • Wasay Majid, 2023. "Housing allowance and the perverse theory of housing outcomes," Urban Research & Practice, Taylor & Francis Journals, vol. 16(5), pages 774-796, October.
    • Handle: RePEc:taf:rurpxx:v:16:y:2023:i:5:p:774-796
    DOI: 10.1080/17535069.2022.2098049
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/17535069.2022.2098049
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/17535069.2022.2098049?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rurpxx:v:16:y:2023:i:5:p:774-796. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rurp20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.