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We draw three conclusions for housing policy from the ordered choice model estimates. Our first conclusion is that programs should be tailored to their local housing market, as programs that work for the housing authority in one city might not work in other locations. We draw this conclusion from the fact that in both the absence of any program and in terms of program uptake, there tends to be greater variation across cities than across household characteristics. In the first column of table 1, the difference in predicted neighborhood quality between living in Boston and either Los Angeles or New York City is equal to nearly a full standard deviation of the unobserved factors determining neighborhood quality (V).

Table 1.
Ordered Choice Model Parameter Estimates
Xk and V β^k β^kS β^kM 
Baseline characteristics    
Teens in household −0.08 −0.48 −0.39 
 (0.05) (0.10) (0.09) 
Family in neighborhood −0.14 −0.16 0.00 
 (0.05) (0.12) (0.06) 
Household member victim 0.03 0.10 0.10 
 (0.05) (0.10) (0.10) 
Baseline neighborhood quality 0.13 −0.02 −0.10 
 (0.01) (0.03) (0.02) 
Site fixed effects/constant    
Baltimore 0.03 −0.25 
 — (0.13) (0.13) 
Boston 0.31 −0.49 0.02 
 (0.10) (0.21) (0.02) 
Chicago −0.04 0.04 −0.50 
 (0.09) (0.13) (0.13) 
Los Angeles −0.52 0.39 0.47 
 (0.10) (0.17) (0.13) 
New York City −0.58 0.60 −0.13 
 (0.09) (0.15) (0.15) 
Unobserved factors    
ρS and ρM — 0.07 −0.17 
 — (0.10) (0.11) 
Xk and V β^k β^kS β^kM 
Baseline characteristics    
Teens in household −0.08 −0.48 −0.39 
 (0.05) (0.10) (0.09) 
Family in neighborhood −0.14 −0.16 0.00 
 (0.05) (0.12) (0.06) 
Household member victim 0.03 0.10 0.10 
 (0.05) (0.10) (0.10) 
Baseline neighborhood quality 0.13 −0.02 −0.10 
 (0.01) (0.03) (0.02) 
Site fixed effects/constant    
Baltimore 0.03 −0.25 
 — (0.13) (0.13) 
Boston 0.31 −0.49 0.02 
 (0.10) (0.21) (0.02) 
Chicago −0.04 0.04 −0.50 
 (0.09) (0.13) (0.13) 
Los Angeles −0.52 0.39 0.47 
 (0.10) (0.17) (0.13) 
New York City −0.58 0.60 −0.13 
 (0.09) (0.15) (0.15) 
Unobserved factors    
ρS and ρM — 0.07 −0.17 
 — (0.10) (0.11) 

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