The Misallocation of Housing Under Rent Control

  title={The Misallocation of Housing Under Rent Control},
  author={Edward L. Glaeser and Erzo F. P. Luttmer},
  • Edward L. Glaeser, Erzo F. P. Luttmer
  • Published 1997
  • Economics
  • When there are binding price controls, there are shortages and the allocation of goods across consumers may not be efficient. In general, the misallocation costs of price controls are first order, while the classic welfare losses due to undersupply are second order. This paper presents an empirical methodology for estimating the degree of misallocation of housing units due to rent control in New York City. This methodology involves comparing the relative consumption of different demographic… CONTINUE READING
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