Estimating neighborhood choice models: Lessons from a housing assistance experiment.
Sebastian Galiani, Alvin Murphy, and Juan Pantano
,
11
(
105
)
American Economic Review
3385-3415
November
2015
Abstract
We use data from a housing-assistance experiment to estimate a model of neighborhood choice. The experimental variation effectively randomizes the rents which households face and helps identify a key structural parameter. Access to two randomly selected treatment groups and a control group allows for out-of-sample validation of the model. We simulate the effects of changing the subsidy-use constraints implemented in the actual experiment.