Using Cross-Sectional Data from the Two Housing Assistance Supply Experiment

question 77

Multiple Choice

Using cross-sectional data from the two Housing Assistance Supply Experiment (HASE) sites-Brown County, Wisconsin, and St. Joseph County, Indiana, John Mulford of Rand Research estimates that the long-run "permanent" income elasticity of housing expenditures to be 0.45 for owners. Using this information, what is likely to happen to housing expenditures if the government increases income transfers to recipients in HASE sites?

• A) Housing expenditures will increase significantly.
• B) Housing expenditures in HASE sites significantly will fall as recipients moved out of these areas to higher-income areas.
• C) Housing expenditures will increase, but not significantly.
• D) Housing expenditures will decrease by a small amount.

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Definitions:

Differentiation

The process by which cells or tissues undergo a change toward a more specialized form or function, often in the context of development.

Apoptosis

Programmed cell death, a process by which cells systematically dismantle themselves in response to specific signals.

Normal Development

The process by which an organism grows and develops in a manner considered typical for its species, following a standard sequence of stages.

Hox Gene Clusters

Groups of genes found in many animals that regulate the development of anatomical structures along the body axis from head to tail.