Public policy, perverse incentives, and the homeless problem

Is homelessness a housing problem per se? In this paper we employ a HUD stu dy from 1984 and Census data from 1990 within the context of simultaneous e mpirical models to examine this and other issues relating to homelessness i n the United States. Our central conclusion is that homelessness does not a ppear to be a national housing problem as such and that, given untoward inc entives among actual and potential homeless populations, policies addressin g homelessness should be directed at other instruments of change (such as m ental health funding and expenditures to treat substance abuse).