In most cases rent control covers only a part of the housing stock. This note provides a simple analysis of the impact which rent control and non-price rationing exert on the rent in the free sector. It is shown that, depending on the rationing mechanism, rents in the free sector can be higher or lower than in the absence of rent controls.
Albon, R.P. and Stafford, D.C. (1990) Rent control and housing maintenance, UrbanStudies, 27, pp. 233-240.
3.
Appelbaum, R.P. and Gilderbloom, J.I. (1990) The redistributional impact of modern rent control, Environment and Planning A, 22, pp. 601-614.
4.
Barzel, Y. (1974) A theory of rationing by waiting, Journal of Law and Economics, 17, pp. 73-95.
5.
Block, W. and Olson, E. (Ed.) (1981) Rent Control-Myth and Realities: International Evidence of the Effects of Rent Control in Six Countries. Vancouver: The Fraser Institute.
6.
Cheung, S.N.S. (1974) A theory of price control, Journal of Law and Economics, 17, pp. 53-71.
7.
Cheung, S.N.S. (1979) Rent control and housing reconstruction: the postwar experience of prewar premises in Hong Kong, Journal of Law and Economics, 22(2), pp. 27-53.
8.
Deacon, R.T. and Sonstelie, J. (1989) The welfare cost of rationing by waiting, Economic Inquiry, 27, pp. 179-196.
9.
Dixit, A. (1991) Irreversible investment with price ceilings, Journal of Political Economy, 99, pp. 541-557.
10.
Dixit, A. (1992) Investment and hysteresis, Economic Perspectives, 6, pp. 107-132.
11.
Engels, W., Stützel, W. and Von Weizsäcker, C.C. (1984) Mehr Markt in der Wohnungswirtschaft , Frankfurter Institut für Wirtschaftsforschung.
12.
Fallis, G. and Smith, L.B. (1984) Uncontrolled prices in a controlled market-the case of rent controls, The American Economic Review, 74, pp. 193-200.
13.
Frankena, M.W. (1975) Alternative models of rent control, UrbanStudies, 12, pp. 303-308.
14.
Gönensay, E. (1966) The theory of black market prices, Economica, 33 (May), pp. 219-225.
15.
Gould, J.R. and Henry, S.G.B. (1967) The effects of price control on a related market , Economica, 34 (February), pp. 42-49.
16.
Gyourko, J. and Linneman, P. (1990) Rent controls and rental housing quality: a note on the effects of New York City's old controls, Journal of Urban Economics, 27, pp. 398-409.
17.
Harloe, M. (1985) Private Rented Housing in the United States and Europe. London: Croom Helm.
18.
Hayek, F.A. (1931) Wirkungen der Mietzinsbeschrankung, Schriften des Vereins für Socialpolitik, 182, pp. 253-270; reprinted as Hayek, F.A. (1981) The repercussions of rent restrictions, in: W. Block and E. Olson, (Eds) Rent Control-Myth and Realities, pp. 171-186. Vancouver: The Fraser Institute.
19.
Holt, C.A. and Sherman, R. (1982) Waiting-line auctions, Journal of Political Economy, 90, pp. 280-194.
20.
Hubert, F. (1991) The Regulation of Rental Contracts in the Housing Market. Frankfurt am Main: Peter Lang.
21.
Lindsay, C.M. and Feigenbaum, B. (1984) Rationing by waiting lists, American Economic Review, 74, pp. 404-417.
22.
Linneman, P. (1987) The effect of rent control on the distribution of income among New York City renters, Journal of Urban Economics , 22, pp. 14-34.
23.
Needleman, L. (1965) The Economics of Housing. London : Staples Press.
24.
Paish, P.W. (1950) The Post-War Financial Problem and Other Essays . London: Macmillan.
