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University of Louisville ThinkIR: The University of Louisville's Institutional Repository Electronic Theses and Dissertations 12-2015 Trapped in the Tiebout model : the impact of federal affordable housing programs on migration of wealthier residents. Yu-Chih Lin University of Louisville Follow this and additional works at:https://ir.library.louisville.edu/etd Part of thePublic Policy Commons, and theUrban Studies Commons Recommended Citation Lin, Yu-Chih, "Trapped in the Tiebout model : the impact of federal affordable housing programs on migration of wealthier residents." (2015).Electronic Theses and Dissertations.Paper 2339. https://doi.org/10.18297/etd/2339 This Doctoral Dissertation is brought to you for free and open access by ThinkIR: The University of Louisville's Institutional Repository. It has been accepted for inclusion in Electronic Theses and Dissertations by an authorized administrator of ThinkIR: The University of Louisville's Institutional Repository. This title appears here courtesy of the author, who has retained all other copyrights. For more information, please contact [email protected]. TRAPPED IN THE TIEBOUT MODEL— THE IMPACT OF FEDERAL AFFORDABLE HOUSING PROGRAMS ON MIGRATION OF WEALTHIER RESIDENTS By Yu-Chih Lin B.A., National Chengchi University, Taiwan, 2007 M.A., National Taiwan University, Taiwan, 2010 A Dissertation Submitted to the Faculty of the College of Arts and Sciences of the University of Louisville in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy in Urban and Public Affairs Department of Urban and Public Affairs University of Louisville Louisville, Kentucky December 2015 Copyright 2015 by Yu-Chih Lin All rights reserved TRAPPED IN THE TIEBOUT MODEL— THE IMPACT OF FEDERAL AFFORDABLE HOUSING PROGRAMS ON MIGRATION OF WEALTHIER RESIDENTS By Yu-Chih Lin B.A., National Chengchi University, Taiwan, 2007 M.A., National Taiwan University, Taiwan, 2010 A Dissertation Approved on September 18, 2015 by the following Dissertation Committee: _________________________________ Dr. Janet M. Kelly (Dissertation Director) __________________________________ Dr. David L. Imbroscio __________________________________ Dr. Sumei Zhang ___________________________________ Dr. Haifeng (Charlie) Zhang (External Examiner) ii DEDICATION I would like to dedicate this book to my beloved family— my parents and my younger sister, who have given me invaluable educational opportunities and always been very supportive. 謹將此書獻給我最親愛的家人 iii ACKNOWLEDGMENTS I would like to thank my major professor, Dr. Janet M. Kelly, for her guidance, patience, and supports. Besides suggesting sources to find the economic literature and the data I needed for my dissertation, she spent time checking the logic of my idea, reading my manuscripts, and even giving me editorial suggestions. I would also like to express my thanks to the other committee members, Dr. David L. Imbroscio, Dr. Sumei Zhang, and Dr. Haifeng (Charlie) Zhang, for their comments and suggestions. The insightful suggestions from each professor helped me significantly improve this dissertation. iv ABSTRACT TRAPPED IN THE TIEBOUT MODEL— THE IMPACT OF FEDERAL AFFORDABLE HOUSING PROGRAMS ON MIGRATION OF WEALTHIER RESIDENTS Yu-Chih Lin September 18, 2015 Housing mobility programs have been implemented in America since the 1990s to solve poverty concentration and to improve the economic self-sufficiency of low-income families through housing subsidies. This policy was based on the assumption that mixed-income neighborhoods provide better resources and opportunities to low-income families so that program participants who relocate to low-poverty neighborhoods improve their economic status. Currently, few studies examine the effectiveness of housing mobility programs under a decentralized fiscal system. Specifically, the migration of program participants may stimulate Tiebout’s vote-with-feet mechanisms and may limit the duration of the newly-created mixed-income environment, leaving poverty concentration and poverty unsolved. This research uses a dynamic economic model to analyze the impacts of housing mobility programs on local taxes and public goods in both the sending and receiving municipalities and the impacts of this change on further migration of different economic classes. An ANOVA model and a MANCOVA model were used to support the findings from the economic model. The ANOVA results indicate that residents of higher-poverty municipalities did not pay more taxes for welfare and v health than residents of lower-poverty municipalities did because the expenses mostly came from intergovernmental funds. However, the MANCOVA results show that the percentage of population growth between 2000 and 2012 in the low-poverty municipalities with more low-income affordable housing program participants was still significantly smaller than that in the low-poverty municipalities with no/fewer low-income affordable housing program participants. These findings accord with the dynamic economic model, which suggests that even if the non-poor living with the poor do not pay more taxes for the public goods used exclusively by the poor, like welfare and health, further migration may still occur under a decentralized fiscal system. Property taxation requires wealthier residents to pay more for each unit of other nonexclusive public goods than the poor do. The research implies that funding anti-poverty programs at the local level rather than the national level may stimulate the out-migration of wealthier residents. As wealthier residents exit the newly mixed-income municipalities, poverty may re-concentrate, limiting the effectiveness of housing mobility programs. vi TABLE OF CONTENTS PAGE ACKNOWLEDGMENTS ................................................................................................. iv ABSTRACT ........................................................................................................................ v LIST OF TABLES .............................................................................................................. x LIST OF FIGURES ........................................................................................................... xi CHAPTER I INTRODUCTION ......................................................................................... 1 CHAPTER II LITERATURE REVIEW ............................................................................. 9 1. The Tiebout Model—Voting with One’s Feet ......................................................... 9 2. Ineffectiveness of the Tiebout Model ................................................................... 12 3. Impacts of Federal Policies on the Tiebout Model ............................................... 19 3.1 Federal policies that worsened the negative consequences ........................ 20 3.2 Federal policies that attempted to mitigate the negative consequences ...... 23 3.2.1 Definition of housing mobility programs ........................................ 24 3.2.2 Program theories of housing mobility programs ............................. 25 3.2.3 Outcomes of housing mobility programs ......................................... 28 4. Aim of the Research .............................................................................................. 38 CHAPTER III DYNAMIC ECONOMIC MODEL OF URBAN MIGRATION ............. 42 1. Assumptions .......................................................................................................... 43 2. Theory Construction ............................................................................................. 45 2.1 Two homogeneous municipalities ............................................................... 46 2.2 Impact of the poor’s out-migration on the poor sending municipality ....... 47 2.3 Impact of the poor’s in-migration on the rich receiving municipality ........ 49 vii

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Lin, Yu-Chih, "Trapped in the Tiebout model : the impact of federal affordable housing programs on migration of wealthier residents." (2015). social experimental design, this research mainly reviewed the outcomes of MTO. MTO "[U]nited and actuated by some common impulse of passion":.
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