ESTIMATING THE BENEFITS OF PUBLIC-HOUSING PROGRAMS: A CHARACTERISTICS APPROACH*

ABSTRACT. In this paper we specify a Stone-Geary utility function defined on housing attributes and other goods, empirically estimate the derived system of demand equations, and use the structural parameters to evaluate the benefits and consumption effects of a Belgian public rental housing program. By taking the composition of the bundle of housing attributes provided under the program into account, this study improves upon previous research which–with few exceptions–relies on a composite good, housing services.