Rent control and misallocation

Gintautas Bloze and Morten Skak

No 7/2009, Discussion Papers on Economics from University of Southern Denmark, Department of Economics

Abstract: The paper considers welfare effects of rent control when it is applied only in a sector of a rental housing market. In rent controlled sectors of the Danish rental housing market, we find welfare reducing overallocation of square meters between 9 and 17 per cent of actual allocations. Looking at the 20 per cent most overallocated households, the overallocation of square meters is between 42 and 92 per cent, and the estimated corresponding welfare loss ranges from 1.5 to 5.3 per cent of the average annual rent in the sectors.

Keywords: Rent control; Housing; Regulation; Price ceiling; Rationing; Allocation (search for similar items in EconPapers)
JEL-codes: D11 D61 L51 R21 R31 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2009-10-15
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.sdu.dk/da/Om_SDU/Institutter_centre/Iv ... 2009/dpbe7_2009.ashx Full text (application/pdf)

Related works:
Journal Article: Rent Control and Misallocation (2013)
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:hhs:sdueko:2009_007

Access Statistics for this paper

More papers in Discussion Papers on Economics from University of Southern Denmark, Department of Economics Department of Economics, University of Southern Denmark, Campusvej 55, DK-5230 Odense M, Denmark. Contact information at EDIRC.
Bibliographic data for series maintained by Astrid Holm Nielsen ().