Estimated effects of increased income on homeowner repair expenditures

by Lawrence Helbers

Purchase Print Copy

 FormatList Price Price
Add to Cart Paperback41 pages $23.00 $18.40 20% Web Discount

Reports the application of a model of homeowner repair expenditures, using baseline Housing Assistance Supply Experiment data for Brown County, Wisconsin, and St. Joseph County, Indiana. Estimates how much more elderly homeowners, divided into 15 categories, would spend on repairs if they received reverse annuity mortgage (RAM) payments amounting to $600, $1,200, or $2,400 annually. The income elasticity of demand for repair and improvement expenditures is estimated to fall between .83 and 1.16, with average repair expenditures typically increasing by less than 10 percent of the annual RAM payment.

This report is part of the RAND Corporation Note series. The note was a product of the RAND Corporation from 1979 to 1993 that reported other outputs of sponsored research for general distribution.

Our mission to help improve policy and decisionmaking through research and analysis is enabled through our core values of quality and objectivity and our unwavering commitment to the highest level of integrity and ethical behavior. To help ensure our research and analysis are rigorous, objective, and nonpartisan, we subject our research publications to a robust and exacting quality-assurance process; avoid both the appearance and reality of financial and other conflicts of interest through staff training, project screening, and a policy of mandatory disclosure; and pursue transparency in our research engagements through our commitment to the open publication of our research findings and recommendations, disclosure of the source of funding of published research, and policies to ensure intellectual independence. For more information, visit

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.