Monday, July 10, 2017

Panhandling in Downtown Manhattan: A Preliminary Analysis

Panhandling in Downtown Manhattan: A Preliminary Analysis. By Gwendolyn Dordick & Brendan O’Flaherty
https://www.gc.cuny.edu/CUNY_GC/media/CUNY-Graduate-Center/PDF/Programs/Economics/Course%20Schedules/Seminar%20Sp.2013/panhandlingpaper100813.pdf

Abstract: Panhandling is a very visible industry, yet mysterious to outsiders. How does it work? How do
panhandlers allocate locations? Is there a market? Do they fight? Is there a mafia? How do
panhandlers get donors to give, when many potential donors think most panhandlers are frauds?
What are good policies toward panhandling? Should it be banned? Should generosity diversion
programs be set up to divert donations to formal charities? Should it be encouraged? Our tentative
answers are that there are more good locations than willing panhandlers, and so location is not
contentious or a big source of efficiency losses. On information, a pooling equilibrium is far from
first-best, and policy might concentrate on improving credibility.

... while panhandlers in general have low credibility, their livelihoods depend on having high
credibility...

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