Spatial Misallocation and Rent Controls

Guillaume Chapelle, Etienne Wasmer and Pierre-Henri Bono

AEA Papers and Proceedings, 2019, vol. 109, 389-92

Abstract: In many global cities the rental housing market is partially regulated. We document that the Paris housing market is dual: a flexible rent sector coexists with a large controlled rent sector. The two sectors have very different rent gradients towards the center of the agglomeration. We develop a model explicitly accounting for these features which allows to investigate general equilibrium effects of rent controls at the city level. In this framework the coexistence of a controlled and flexible rent sector increases the spatial misallocation of households. This mismatch can generally be alleviated by an improvement in urban transport infrastructures.

JEL-codes: R11 R12 R13 R21 R31 R38 (search for similar items in EconPapers)
Date: 2019
Note: DOI: 10.1257/pandp.20191024
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://www.aeaweb.org/doi/10.1257/pandp.20191024 (application/pdf)
https://www.aeaweb.org/doi/10.1257/pandp.20191024.data (application/zip)
https://www.aeaweb.org/doi/10.1257/pandp.20191024.ds (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:apandp:v:109:y:2019:p:389-92

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/subscribe.html

Access Statistics for this article

AEA Papers and Proceedings is currently edited by William Johnson and Kelly Markel

More articles in AEA Papers and Proceedings from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().