Accession Number : ADA185933


Title :   An Alternative Approach to the Variable Housing Allowance Program


Descriptive Note : Master's thesis


Corporate Author : AIR FORCE INST OF TECH WRIGHT-PATTERSON AFB OH


Personal Author(s) : Gerth, Gregory R


Full Text : https://apps.dtic.mil/dtic/tr/fulltext/u2/a185933.pdf


Report Date : Jan 1987


Pagination or Media Count : 100


Abstract : This thesis discusses the essential features of an alternative to the current variable housing allowance (VHA) program, which is called the variable compensation program. The outline of the variable compensation program begins by assuming a typical servicemember has a Stone-Geary utility function. Next, it derives this typical servicemember's implied expenditure function. This expenditure function is a function of the prices of two composite commodities, housing and nonhousing goods and services, and the level of utility provided by the member's regular military compensation. The parameters of this function are the respective subsistence quantities and marginal budget shares of the two composite goods. The subsequent sections of the variable compensation program outline discuss: (1) techniques to estimate these parameters, (2) the methodology of determining the appropriate levels of utility for the various military paygrades, (3) techniques to estimate the geographic price levels of housing and nonhousing goods and services, and (4) potential sources of data required by this program. This thesis concludes with a discussion of the advantages of the variable compensation program over the current VHA program as well as possible areas of expansion to make this program a more sophisticated analysis of military compensation.


Descriptors :   *HOUSING(DWELLINGS) , *PLANNING PROGRAMMING BUDGETING , COMMODITIES , COMPENSATION , EXPANSION , GEOGRAPHY , MILITARY BUDGETS , MILITARY PERSONNEL , PRICE INDEX , QUANTITY , SALARIES , SOURCES , THESES , VARIABLES


Subject Categories : Administration and Management
      Economics and Cost Analysis


Distribution Statement : APPROVED FOR PUBLIC RELEASE