Scandinavian Working Papers in Economics
Research Papers in Economics,
Stockholm University, Department of Economics
No 1997:7: Rent-Control and Prices of Owner Occupied Housing
Jonas Häckner () and Sten Nyberg ()
Additional contact information
Jonas Häckner: Dept. of Economics, Stockholm University, Postal: Department of Economics, Stockholm University, S-106 91 Stockholm, Sweden
Sten Nyberg: Dept. of Economics, Stockholm University, Postal: Department of Economics, Stockholm University, S-106 91 Stockholm, Sweden
Abstract: We examine the relation between rent control and prices of owner occupied housing in the presence of different qualities of housing. While a rent ceiling and the price of condominiums are substitutes if housing is undifferentiated, it is shown that this is not necessarily the case when housing differs in quality. A complete dismantling of rent-control may in fact increase the price of condominiums.
Keywords: rent control; product differentiation; rationing
16 pages, May 6, 1998
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