The impact of rent control: investigations on historical data in the city of Lyon

Loïc Bonneval (loic.bonneval@univ-lyon2.fr), Florence Goffette-Nagot (goffette-nagot@gate.cnrs.fr) and Zhejin Zhao
Additional contact information
Loïc Bonneval: Univ Lyon, Université Lumière Lyon 2, Centre Max Weber UMR 5283, F-69007 Lyon, France
Florence Goffette-Nagot: Univ Lyon, CNRS, GATE UMR 5824, F-69130 Ecully, France

No 2119, Working Papers from Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon

Abstract: This paper reexamines the debated issue of the effects of rent control policy on the rental market. We investigate the impact on rents of three different forms of rent regulation in Lyon over a 78-years period. We use an original historical dataset which allows us to track regulation changes, rent paid and tenant moves for a long-run panel of flats. Using a difference-in-differences method, we estimate the impact of regulation on rents depending on the type of rent control over different economic periods. Our results show that the impact of rent control deepened over time. Starting with a 11% reduction in rents between 1914 and 1929, it reached a decrease by 47% in the regulated rental market in the 1949-1968 period. We do not find any increase in rents in the unregulated segment of the rental market, which could be a result of a reduction in housing investment in the long run.

Keywords: Rent control; Housing policy; Difference-in-differences (search for similar items in EconPapers)
JEL-codes: N93 N94 R38 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-his, nep-reg and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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ftp://ftp.gate.cnrs.fr/RePEc/2021/2119.pdf (application/pdf)

Related works:
Journal Article: The impact of rent control: Investigations on historical data in the city of Lyon (2022)
Working Paper: The impact of rent control: Investigations on historical data in the city of Lyon (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:gat:wpaper:2119

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