Hmm, the impression I got from this was that our cities will be so much better when we get rid of all council houses/flats. Not saying there are no valid insights, but that one did slightly prejudice me.
Yeah she doesn't really make that point well.
It's been a while since I read the thing she's referring to, which is a bit lacking in politics like most of that group's stuff. What they're good at is producing largely apolitical models, in this one about equlibrium between housing quality vs local job prospects, which can have really interesting political implications.
What I got from it was more like:
'Unless you fix a bunch of other stuff that's wrong with capitalism at the same time, subsidising low quality housing creates ghettoes/sink estates and actually if you
do fix the other things, it removes the motive to stuff low paid and unemployed into crap housing in horrible areas with no proper facilities in the first place.
So the leverage point you want to be looking at is actually capital accumulation.'
Which is a bit more complex than what she's saying in order to make her point about counter-intuitive results, but still problematic in all sorts of ways in the details.
If you want to do more on this, I suggest a separate thread. I think the subject is an interesting one, but nothing much to do with Corbyn and the PLP's machinations.