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An Optimization Model for Location of Subsidized Housing in Metropolitan Areas

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  • Michael P. Johnson
  • Arthur P. Hurter

Abstract

This paper presents an optimization model for evaluation of alternative spatial configurations of rent-subsidized housing in a large metropolitan area as well as associated monetary and nonmonetary impacts. Groups affected by these configurations include residents of subsidized housing, owners of nearby single-family housing, employers and society at large. Since impacts of subsidized housing are very localized, the first stage of the model creates potential location patterns for many small geographic areas. The second stage of the model uses local benefits to derive a location scheme for the metropolitan area which balances net social benefit with equity considerations of the geographical impact of subsidized housing. We apply this methodology to a small region in metropolitan Chicago and demonstrate alternative location schemes. *mpjr@merle.acns.nwu.edu **hurter@iems.nwu.edu

Suggested Citation

  • Michael P. Johnson & Arthur P. Hurter, 1997. "An Optimization Model for Location of Subsidized Housing in Metropolitan Areas," JCPR Working Papers 12, Northwestern University/University of Chicago Joint Center for Poverty Research.
    • Handle: RePEc:wop:jopovw:12
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    References listed on IDEAS

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    1. S J Ratick & A L White, 1988. "A Risk-Sharing Model for Locating Noxious Facilities," Environment and Planning B, , vol. 15(2), pages 165-179, June.
    2. Johansson,Per-Olov, 1991. "An Introduction to Modern Welfare Economics," Cambridge Books, Cambridge University Press, number 9780521356954, September.
    3. Donald C. Guy & John L. Hysom & Stephen R. Ruth, 1985. "The Effect of Subsidized Housing on Values of Adjacent Housing," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 13(4), pages 378-387, December.
    4. Marsh, Michael T. & Schilling, David A., 1994. "Equity measurement in facility location analysis: A review and framework," European Journal of Operational Research, Elsevier, vol. 74(1), pages 1-17, April.
    5. Masuo Kashiwadani & Mikihiro Ogura, 1987. "A Hybrid Multinomial Logit And Linear Programming Model For Residential Location Projection," Papers in Regional Science, Wiley Blackwell, vol. 63(1), pages 59-70, January.
    6. Michael P. Johnson & Arthur P. Hurter, "undated". "Economic Impacts of Subsidized Housing Location," IPR working papers 97-5, Institute for Policy Resarch at Northwestern University.
    7. Allen L. White & Samuel J. Ratick, 1989. "Risk, Compensation, And Regional Equity In Locating Hazardous Facilities," Papers in Regional Science, Wiley Blackwell, vol. 67(1), pages 29-42, January.
    8. Michael P. Johnson & Arthur P. Hurter, 1997. "Economic Impacts of Subsidized Housing Location," JCPR Working Papers 2, Northwestern University/University of Chicago Joint Center for Poverty Research.
    9. Revelle, Charles, 1987. "Urban public facility location," Handbook of Regional and Urban Economics, in: E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 2, chapter 27, pages 1053-1096, Elsevier.
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    Cited by:

    1. Michael P. Johnson & Arthur P. Hurter, 2000. "Decision Support for a Housing Mobility Program Using a Multiobjective Optimization Model," Management Science, INFORMS, vol. 46(12), pages 1569-1584, December.

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