Shadow Prices of Rent-Controlled Housing
12 Pages Posted: 29 Dec 2014
Date Written: 1995
The market for rental housing in The Netherlands is state regulated, notably by caps on rental prices. This paper attempts to explain differences in the length of time that individual allocation rights are held by members of housing cooperatives in Amsterdam before they exercise them. Length of time before exercise acts as a shadow price. These shadow prices are shown to depend on locational characteristics, in particular neighborhood racial transition, and rent assistance.
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