ÈâÂþÎÝ Furman Center Speaker Series- The Price of Inclusion: Evidence from Housing Developer Behavior
- Monday, October 12, 2020
- 12:00–1:00 p.m.
- This is a virtual event
Please join the ÈâÂþÎÝ Furman Center for a lunchtime presentation on:
The Price of Inclusion: Evidence from Housing Developer Behavior
Evan Soltas
PhD Student
Department of Economics
Massachusetts Institute of Technology
Please RSVP
In many cities, incentives and regulations lead developers to integrate low-income housing into market-rate buildings. How cost-effective are these policies? I study take-up of a tax incentive in New York City using a model in which developers trade off between tax savings and pre-tax income. I estimate the model using policy variation and microdata on all development from 2003 to 2015. The citywide marginal fiscal cost is $1.6 million per inclusionary unit. Differences in neighborhoods explain most of the cost premium over other housing programs. Weighing costs against external estimates of neighborhood effects, I detect "opportunity bargains" in some neighborhoods.
This event is open to members of the ÈâÂþÎÝ community. Please register using the RSVP link above.