Patrick Power PRO
Economics PhD @ Boston University
Develops
Finds
Policies
?
Eviction Prevention policies can protect tenants temporarily
Increase the cost of the real estate investor who may pass this onto future tenants
Provides access to free legal representation in Eviction Cases
Policy: Right to Counsel
Tradeoff:
Lowers the likelihood that tenants default on rent in the first place*
Expensive policy and benefits may be seized by the real estate investors
Policy: Rental Subsidies
Tradeoff:
Overlapping Generation model of households who consume housing and consumption and face job-loss/divorce risks
Randomized Control Trail on the Effectiveness of Legal Representation in Eviction Cases
Model
Key Data
Model
Key Data
Counterfactual Policy Assessments
"High-Quality Eviction Data"
Roughly Monotonically decreasing
American Information Research Services (AIRS).
Infutor
CPS
Shriver Act
Deterministic Life-Cycle Component
Persistent Component
Transitory Component
Rent
Eviction Filings
Eviction
Cost of Ownership
Budget Constraint
None
Purchase/Selling Length
Rents are priced in a risk-neutral manner, such that for each lease investors break even in terms of discounted expected profits
Rental Price
Market
Representative landowner for each house quality
Setup
Perfectly Competitive
Tax
Cost of Homelessness & Policies
Expenditure
Lump Sum tax on Investors
Default premia increases when
Household Welfare
Net Government Expenditure
Length of Eviction Case
Fraction of Rental Debt Repaid
Shriver Act RCT
Model Predictions
Rent
Homelessness
Cost of Default
Household Welfare
Net Government Expenditure
Real Estate Investors
Tenants
Heterogeneity
By Patrick Power
Presentation of Boaz Abramson's Working Paper: The Welfare Effects of Eviction and Homelessness Policies