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THE COMPARATIVE STATIC RESPONSE OF RENTAL HOUSING TO A PRICE CHANGE: INFLATION AND GOVERNMENT POLICY *
Author(s) -
Gerber Robert I.
Publication year - 1986
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/j.1467-9787.1986.tb01071.x
Subject(s) - economics , stylized fact , inflation (cosmology) , renting , context (archaeology) , interest rate , nominal interest rate , monetary economics , inflation rate , macroeconomics , comparative statics , quality (philosophy) , real interest rate , microeconomics , paleontology , philosophy , physics , epistemology , biology , theoretical physics , political science , law
. A two period consumer choice model is presented in which housing is treated as a quality differentiated good. The short‐run comparative static response of rental housing to a price change is examined via an example, an exogenous increase in the inflation rate. Two stylized facts are alternately used; interest income is taxed, and interest rate ceilings are imposed on small savings deposits. The partial equilibrium distributional impact of inflation, in the context of rental housing markets, is also discussed.