Why Households Apply for Housing Allowances

by James C. Wendt


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This report analyzes the decision to enroll in the housing allowance program. Section II describes the steps in the enrollment process, the factors that appeared to have the greatest impact on households' decision to enroll, and the two-stage modeling of that decision. Section III explains the selection of household surveys that provided the data. The body of the report presents two statistical models that extend Ellickson's (1981) earlier formulation: (1) the acquisition of knowledge, to explain who did not know about the program and why; and (2) the decision itself, to determine who did not enroll and why. Generalizing from the results of the models, the author considers the implications for participation in a nationwide program. Finally, the policy consequences of increasing the rate of enrollment in a future program is discussed.

This report is part of the RAND Corporation Report series. The report was a product of the RAND Corporation from 1948 to 1993 that represented the principal publication documenting and transmitting RAND's major research findings and final research.

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.