Quantifying and explaining stickiness in housing rents: A Turkish case study with micro-level data
Cevriye Aysoy () and
Semih Tumen ()
Journal of Housing Economics, 2014, vol. 25, issue C, 62-74
Using a national panel of housing units, this paper documents that the rate of nominal rigidity in housing rents is high in Turkey between 2008 and 2011. We find that, on average, 31.5% of the rents did not change from year to year in nominal terms. We then ask if the incidence of nominal rigidity depends on the turnover status of the housing unit. We show that 35.4% of the nonturnover units had rigid rents, while for only 17.1% of the turnover units rents did not change. We also present evidence that grid pricing is associated with more than half of the nominal rigidity in housing rents in our sample. The household- and individual-level determinants of the nominal rigidity in rents and turnover status are also investigated using the micro-level details available in our dataset. We document that, relative to the low-income tenants, high-income tenants are less likely to have rigid rents and they are also less likely to change units frequently. This finding suggests that search and moving costs impose frictions that amplify the opportunity costs of high-income tenants; thus, they are more likely to agree on reasonable rent increases for the purpose of saving time and reducing emotional stress.
Keywords: E31; R21; R31; Housing rents; Nominal rigidities; Turnover; Grid pricing (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
Working Paper: Quantifying and Explaining Stickiness in Housing Rents: A Turkish Case Study with Micro-Level Data (2014)
Working Paper: Quantifying and Explaining Stickiness in Housing Rents: A Turkish Case Study with Micro-level Data (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:jhouse:v:25:y:2014:i:c:p:62-74
Access Statistics for this article
Journal of Housing Economics is currently edited by H. O. Pollakowski
More articles in Journal of Housing Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().