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Project Citation: 

Chapelle, Guillaume, Wasmer, Etienne, and Bono, Pierre-Henri. Replication data for: Spatial Misallocation and Rent Controls. Nashville, TN: American Economic Association [publisher], 2019. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-13.

Project Description

Summary:  View help for Summary In many global cities the rental housing market is partially regulated. We document that the Paris housing market is dual: a flexible rent sector coexists with a large controlled rent sector. The two sectors have very different rent gradients towards the center of the agglomeration. We develop a model explicitly accounting for these features which allows to investigate general equilibrium effects of rent controls at the city level. In this framework the coexistence of a controlled and flexible rent sector increases the spatial misallocation of households. This mismatch can generally be alleviated by an improvement in urban transport infrastructures.

Scope of Project

JEL Classification:  View help for JEL Classification
      R11 Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
      R12 Size and Spatial Distributions of Regional Economic Activity
      R13 General Equilibrium and Welfare Economic Analysis of Regional Economies
      R21 Urban, Rural, Regional, Real Estate, and Transportation Economics: Housing Demand
      R31 Housing Supply and Markets
      R38 Production Analysis and Firm Location: Government Policy

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