Show recipients might increase their spending on nonhousing


Problem

Federal housing assistance programs provide allowances that can only be spent on housing. Several empirical studies find that recipients increase their nonhousing expenditures by 10% to 20% (cited in Harkness and Newman, 2003). Show that recipients might (but do not necessarily) increase their spending on nonhousing, depending on their tastes.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Show recipients might increase their spending on nonhousing
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