Stickiness of rental rate and housing vacancy rate

Haoyu Wang

Economics Letters, 2020, vol. 195, issue C

Abstract: We study the stickiness in house rent by examining rent under two settings: rent is determined solely by landlord and rent is set by Nash bargaining between landlord and tenant. Our results show that, under Nash bargaining, the vacancy rate is able to restrain the growth of rents and hence generates the stickiness feature in rents.

Keywords: Sticky rent; Nash bargaining; Business cycle (search for similar items in EconPapers)
JEL-codes: E3 R31 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:195:y:2020:i:c:s0165176520303001

DOI: 10.1016/j.econlet.2020.109487

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