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San Jose State University Urban Economics & Virtue Ethics Questions

San Jose State University Urban Economics & Virtue Ethics Questions

Question Description

PART A: Answer any 5 of the questions A.1 – A.7. Do not answer additional questions. This part is worth 15% of the exam.

Briefly define and give a specific example of:

A.1. Housing tenure

A.2. Stock-flow housing model

A.3. Rent control

A.4. The Big Sort

A.5. Mortgage interest deduction

A.6. Incidence and supply elasticity

A.7. Housing market GSEs

PART B: Answer any 3 of the questions B.1 – B.5. Do not answer additional questions. This part is worth 30% of the exam.

B.1. Why, according to Brueckner, do some people rent housing and others own housing?

B.2. Compare the degree to which individual utility is increased vs. slums reduced for the following housing subsidy programs: IG, HV, PRS, and PH.

B.3. Why, according to Brueckner, is there a misallocation of housing under rent control?

B.4. According to Brueckner, are renters more likely to abuse property than owners?

B.5. Briefly explain Glaeser and Gyourko’s assessment of Fannie Mae and Freddie Mac.

PART C: Answer only 1 of the questions C.1 – C.3. Do not answer additional questions. This part is worth 55% of the exam.

C.1. Richard Florida describes “The Big Sort.” What forces propel this sorting? What are the implications of the Big Sort?

C.2. Brueckner describes a choice model of homelessness and policies to address homelessness. In particular, he says that well-meaning policies like minimum dwelling size can backfire. How can this happen?

C.3. Glaeser and Gyourko say that the mortgage interest deduction does not make good policy. Why, according to them, is this the case?

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