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Tenancy rent control

TLDR
In this article, the authors examined the positive and normative economics of tenancy rent control when introduced into a previously uncontrolled housing market, and showed that the rent control does not generate excess demand but instead induces a different long-run equilibrium in the market.
Abstract
Summary Many jurisdictions around the world now implement a form of rent control in which rents are controlled within tenancies but are free to vary between tenancies. This form of rent control is termed tenancy rent control. This paper examines the positive and normative economics of tenancy rent control when introduced into a previously uncontrolled housing market. Unlike traditional forms of rent control, tenancy rent control does not generate excess demand but instead induces a different long-run equilibrium in the market. Compared with the uncontrolled equilibrium, the tenancy rent control equilibrium entails some distortion but also improves security of tenure. Thus, tenancy rent control may be a reasonable compromise between those who favor extensive government intervention in the housing market and those who favor little if any. The paper does not discuss the effects of introducing tenancy rent control into a tightly controlled housing market such as Sweden’s, beyond noting that doing so would entail partial decontrol. It should however be possible to adapt the paper’s analysis to treat this situation.

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References
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Journal Article

Uncertainty and the Welfare Economics of Medical Care

TL;DR: In this article, the authors focus on the way in which the operation of the medical-care industry and the efficacy with which it satisfies the needs of society differ from a norm, and the most obvious distinguishing characteristics of an individual's demand for medical services is that it is not steady in origin as, for example, for food or clothing but is irregular and unpredictable.
Journal ArticleDOI

Uncertainty and the welfare economics of medical care

TL;DR: This chapter focuses on the way in which the operation of the medical-care industry and the efficacy with which it satisfies the needs of society differ from a norm.
Journal ArticleDOI

Time for Revisionism on Rent Control

TL;DR: The theoretical case against rent control is weak, particularly when the housing market is viewed as imperfectly competitive as mentioned in this paper, and the empirical case against them is weak too, and economists should reconsider their blanket opposition to current rent control systems and evaluate them on a case-by-case basis.
Book

Housing Policy in Europe

TL;DR: This chapter discusses housing in transition in the United Kingdom, which has seen a significant change in the past 20 years from a primarily rural to a suburban setting.
Journal ArticleDOI

Equity and efficiency aspects of rent control: An empirical study of New York City

TL;DR: In this paper, the authors examined the distributional consequences of rent control for New York City residents in the context of the 1968 Housing and Vacancy Survey (HVS) and found that rent control had both efficiency and distributional effects.