LIHTC Crowd-Out: Supply & Demand Incidence
Better Blocks NJ
Sinai–Waldfogel (2005)
Eriksen–Rosenthal (2010)
Baum-Snow–Marion (2009)
Custom
Supply elasticity
1.0
inelastic (vertical S)
elastic (flat S)
Demand elasticity
1.0
inelastic (vertical D)
elastic (flat D)
S (private supply)
S' (gross of subsidy)
D
Q*
Q^S
Crowd-out formula: net additionality = E
s
/(E
s
+E
d
). Full crowd-out requires elastic supply
and
inelastic demand simultaneously. Sources:
Sinai & Waldfogel (2005)
·
Eriksen & Rosenthal (2010)
·
Baum-Snow & Marion (2009)
·
betterblocksnj.org