Showing posts with label Urban Economics. Show all posts
Showing posts with label Urban Economics. Show all posts
Thursday, October 25, 2018
Tuesday, January 9, 2018
Rent control: the law of unintended consequences at work
"The Effects of Rent Control Expansion on Tenants, Landlords, and Inequality: Evidence from San Francisco," a new NBER Working Paper by Rebecca Diamond, Timothy McQuade and Franklin Qian
Abstract:
Abstract:
We exploit quasi-experimental variation in assignment of rent control to study its impacts on tenants, landlords, and the overall rental market. Leveraging new data tracking individuals’ migration, we find rent control increased renters’ probabilities of staying at their addresses by nearly 20%. Landlords treated by rent control reduced rental housing supply by 15%, causing a 5.1% city-wide rent increase. Using a dynamic, neighborhood choice model, we find rent control offered large benefits to covered tenants. Welfare losses from decreased housing supply could be mitigated if insurance against rent increases were provided as government social insurance, instead of a regulated landlord mandate.Contact NBER to get a copy of the paper.
Federal Reserve Bank of St. Louis: MSA real income in the early 1970s influenced population growth
The figure seems to indicate a positive correlation between these variables. For instance, the Seattle, Denver, Anchorage, and San Diego MSAs, which had relatively higher real incomes in 1970, experienced high population growth over the period. On the other hand, the Detroit, Philadelphia, and Pittsburgh MSAs, which had lower real incomes in 1970, seem to have experienced lower (negative) population growth. Not all cities exhibit the positive correlation, however. The Atlanta, Houston, and Dallas MSAs had low average real incomes in 1970 yet experienced high population growth over the period. Incomes in these MSAs, however, have grown rapidly since 1970, which could be a main reason for the population growth.Read the entire synopsis here. Complete analysis in PDF.
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