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Analyzes the effects of the HASE experimental housing allowance program on the housing consumption of both recipients and nonrecipients in the two experimental sites (Brown County, Wisconsin, and St. Joseph County, Indiana). For recipients, there were four conclusions. (1) Both renters and homeowners increased their housing consumption by 8 percent. (2) Renters increased their consumption mainly by moving; owners, by making home improvements. (3) Renters spent a sixth of the allowance to increase their consumption; owners, a fifth. (4) Allowance payments caused half of renters' increased consumption, an eighth of the owners'. The program's effect on the housing of nonrecipients was small but positive. Compared with public housing and unrestricted cash grants, housing allowances cause twice as much increase in housing consumption as either of the other programs; and they provide twice the benefits per program dollar as public housing, slightly less than cash grants.

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