On the distribution of public program benefits between landlords and tenants

Many public programs have differential impacts on diverse parts of metropolitan areas. This fact has led analysts to use changes in land values as measures of the benefits of public programs. Using a model derived from theoretical urban economics, this paper demonstrates that changes in land values will only equal total benefits under very restrictive assumptions. Making concrete assumptions about consumer demand, the paper goes beyond previous work to consider the distributional impact of three different kinds of public programs: those which provide uniform benefits to every community, those which attempt to reduce intercommunity inequality, and those which generate improvements in only a subset of the region's towns.