Question: Federal housing assistance programs provide allowances that can be spent only on housing. Several empirical studies find that recipients increase their non-housing expenditures by 10%

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

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