 Equilibrium Rent and Housing Policy ImplicationsMartin Lux and Petr Sunega Czech Journal of Economics and Finance (Finance a uver), 2003, vol. 53, issue 1-2, 31-59 Abstract: Housing-policy research in European Union countries distinguishes between two kinds of rent control: non-targeted ""first-generation"" rent control and targeted ""second-generation"" rent control, the later which better reflects housing market relations. The article demonstrates the drastic consequences of first-generation rent control in the Czech Republic, using criteria of social effectiveness and economic efficiency. The authors present the results of an econometric simulation model on the determination of equilibrium market rents after rent deregulation. Due to a sharp decrease in housing affordability in the Czech Republic, the authors simulate the application of two housing-policy instruments: social housing and housing allowance. A cost-benefit analysis shows that rent deregulation and the application of effective policy instruments would substantially increase the income of landlords, decrease the level of currently biased market rents, and maintain the relative affordability of housing. Keywords: housing policy; rent control; social housing; housing allowance (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:fau:fauart:v:53:y:2003:i:1-2:p:31-59 Access Statistics for this article More articles in Czech Journal of Economics and Finance (Finance a uver) from Charles University Prague, Faculty of Social Sciences Contact information at EDIRC. |
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