The Research Of The Applicability Of The Spatial Econometrics And DID Method To The Influence Of The Surrounding Property Values Of The LIHTC Program In US

The Low Income Housing Tax Credits Program encourages private sectors and non-profit organizations to join in the investment, construction and management of the affordable housing. From the Program itself, Since 1986, LIHTC program has a good performance, increased the supply of affordable housing, from the external effects of the program, the affordable housing project usually have certain influence on the surrounding property values, the government and society have deeply concern on it, people have already done the research aimed at the influence, but different analysis methods had different effects, it needs to establish an adapt analysis method to do the research.At present, the foreign researchs have two main methods to study the impact on the surrounding property values of the public housing: the first kind of methods is the general hedonic price method, another kind of methods is to establish the control group and the experimental group, and compare both of them, but both of the methods have their own defects and shortcomings. Because the general hedonic price method ignores the geographical spatial factors, it will lead to a system error, and the single comparison analysis methods ignore the differences in advance. In order to overcome the defects and shortcomings of the current methods, seek for the better method, the paper introduces the spatial measurement and difference-in-difference model.Firstly, the paper expounded the basic theory of the spatial econometric model and the difference-in-difference model, and from the analysis on the characteristics of the model, it studied the applicability of the surrounding property values. Secondly, from the empirical, using the 2000-2010 decennial census data, using the spatial characteristics of price model and the method of double difference model, the article carried on the analysis from its own property prices and rental housing rent two aspects, analyze the LIHTC program impact on the surrounding property values, and compared with previous research results found that the results are consistent. From empirical to verify the two models based on the analysis of the applicability of the LIHTC program impact on the surrounding property values. Finally,compared the applicable condition of the space measurement and difference-in-difference model and the empirical analysis of the results,found that the spatial econometric model is more suitable for the research on the influence of the surrounding property values, it provides a more effective tool of policy analysis to the surrounding property values for the affordable housing research.