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Urban Studies
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The Welfare Cost of Hong Kong's Public Housing Programme

Fu-Lai Yu

Hong Kong Baptist College, Hong Kong

Si-Ming Li

Hong Kong Baptist College, Hong Kong

Public housing is an important source of accommodation in Hong Kong. Subsidies to public housing are tied to the consumption of housing services. Consumer's consumption pattern will therefore be distorted, and a welfare loss incurred as compared to an equivalent cash transfer. This paper seeks to measure the extent to which tenants' benefit from public housing subsidies. A measure of net tenant benefit is used, which is based upon the Marshallian consumer surplus concept. The results indicate that Hong Kong's public housing programme has had a significant impact upon households' consumption patterns, and that the welfare loss is relatively low.

Urban Studies, Vol. 22, No. 2, 133-140 (1985)
DOI: 10.1080/00420988520080211
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