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This is a short note on two potential worries surrounding a scenario of falling rents in East Germany. These worries, put forward by Wolfgang Maennig, are: (1) that housing suppliers could withdraw as rents fall, while (2) housing demanders might hesitate to expand consumption as rents fall. - This note insists that falling rents’ overall benefits would outweigh their costs.

jahrbücher für nationalökonomie und statistik

Für und Wider eines Rückgangs ostdeutscher Mieten / A Brief Discussion of Letting East Germany’s Rents Fall: Eine Erwiderung auf Wolfgang Maennig (2006), Mietpreissenkungen lösen das Leerstandsproblem nicht, Jahrbücher für Nationalökonomie und Statistik, in diesem Heft / A Reply to Wolfgang Maennig (2006), Mietpreissenkungen loesen das Leerstandsproblem nicht, Jahrbuecher fuer Nationaloekonomie und Statistik, this issue