Mense, Andreas, Michelsen, Claus and Kholodilin, Konstantin A. (2023) Rent control, market segmentation, and misallocation: causal evidence from a large-scale policy intervention. Journal of Urban Economics, 134. ISSN 0094-1190
Full text not available from this repository.Abstract
This paper studies market segmentation that arises from the introduction of rent control. When a part of the market remains unregulated, theory predicts an increase of free-market rents due to the misallocation of households to dwellings. To document this mechanism empirically, we study a large-scale policy intervention in the German housing market. We isolate the misallocation mechanism by exploiting temporal variation in treatment dates in an event study design. We find a robust positive spillover effect of rent control on free-market rents. Moreover, mobility of renters living in rent-controlled units decreased. [91 words]
| Item Type: | Article |
|---|---|
| Additional Information: | © 2022 Elsevier Inc. |
| Divisions: | Geography & Environment |
| Subjects: | H Social Sciences > HB Economic Theory |
| Date Deposited: | 04 Jan 2023 15:06 |
| Last Modified: | 02 Dec 2024 17:03 |
| URI: | http://eprints.lse.ac.uk/id/eprint/117699 |
Actions (login required)
 |
View Item |
