TY  - JOUR
A1  - Caulkins, Jonathan P.
A1  - Grass, Dieter
A1  - Johnson, Michael
A1  - Tragler, Gernot
A1  - Yegorov, Yuri
A1  - Feichtinger, Gustav
T1  - Placing the poor while keeping the rich in their place: Separating strategies for optimally managing residential mobility and assimilation
Y1  - 2005/07/15
JF  - Demographic Research
JO  - Demographic Research
SN  - 1435-9871
SP  - 1
EP  - 34
DO  - 10.4054/DemRes.2005.13.1
VL  - 13
IS  - 1
UR  - https://www.demographic-research.org/volumes/vol13/1/
L1  - https://www.demographic-research.org/volumes/vol13/1/13-1.pdf
L2  - https://www.demographic-research.org/volumes/vol13/1/13-1.pdf
N2  - A central objective of modern US housing policy is deconcentrating poverty through "housing mobility programs" that move poor families into middle class neighborhoods. Pursuing these policies too aggressively risks inducing middle class flight, but being too cautious squanders the opportunity to help more poor families. This paper presents a stylized dynamicoptimization model that captures this tension. With base-caseparameter values, cost considerations limit mobility programs before flight becomes excessive. 

However, for modest departures reflecting stronger flight tendencies and/or weaker destination neighborhoods, other outcomes emerge. In particular, we find 	state-dependence and multiple equilibria, including both de-populated and oversized outcomes. For certain sets of parameters there exists a Skiba point that separates initial conditions for which the optimal strategy leads to substantial flight and depopulation from those for which the optimal strategy retains or even expands the middle class population. These results suggest the value of estimating middle-class neighborhoods' "carrying capacity" for absorbing mobility program placements and further modeling of dynamic response.

ER  -