PRIVATIZATION OF PUBLIC-HOUSING - AN ANALYSIS OF POLICY ALTERNATIVES

This paper discusses alternative privatization schemes for public housing in light of economic efficiency, ''policy efficiency,'' and equity. The analysis shows that removing restrictions to resale by the purchasers is the key to improving economic efficiency and that restricting resales to target group members is the key to achieving policy efficiency. Further, removing restrictions to bidding (viz. open competition) among eligible households is essential for both economic efficiency and equity. The paper discusses the trade-off between various policy objectives inherent in some of the schemes. It recommends the ''eligibility model'' of privatization, under which households can resell their public housing units any time after purchase to any household within the group targeted by the government for assistance as determined by the government.