Moderate Rent Controls: A Microeconomic And Public Choice Analysis
Areuea Journal: Journal Of The American Real Estate & Urban Economics Association
Why do people vote for (and against) moderate rent controls? The microeconomic effects of rent controls are complex-they affect both renters and homeowners in many ways, creating a complicated pattern of winners and losers. Renters stand to pin initially from the controlled rents, but competition for scarce housing dissipates these gains, Homeowners are affected by clanging housing8 demand patterns mad shifts in property tax burdens. An econometric analysis of the 1980 Seattle, Washington rent control referendum supports the conclusion that voters recognized the microeconomic gains and losses and voted accordingly on this issue. Use of census tract data makes this public choice analysis particularly strong compared to other studies that aggregate voters at the city or county level, possibly missing important intrajurisdiction voting patterns.
Mann, Bruce D., and Michael Veseth. 1983. "Moderate Rent Controls: A Microeconomic and Public Choice Analysis." Areuea Journal: Journal Of The American Real Estate & Urban Economics Association 11(3): 333-343.