Economics Dictionary of ArgumentsHome
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| Rent control: Rent control in economics refers to government-imposed limits on the amount of rent landlords can charge tenants. It aims to make housing more affordable, especially in high-demand areas. While rent control can protect tenants from rising rents, it may lead to reduced investment in maintenance and new housing, creating shortages and lower-quality housing over time. See also Rent, Society, Government policy. _____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Armen A. Alchian on Rent Control - Dictionary of Arguments
Henderson I 33 Racism/Rent Control/Alchian/Demsetz/Henderson/Globerman: Alchian and Demsetz (1973)(1) considered the effects of another way in which government attenuated rights of property owners: rent control. They noted that effective rent control, which is rent control that keeps rents below free-market levels, "prompts landlords to lease their apartments to persons possessing personal characteristics that landlords favor." During World War II, rent control was common in major American cities. But tie-in sales of furniture and racial discrimination, unlike charging a free-market rent, were legal. The key word in newspaper ads to indicate that the landlord discriminated on racial grounds was „restricted." Examining apartment-for-rent advertising in a Chicago newspaper, they reported: „[T]he percentage of apartment-for-rent advertisements specifying that the apartment was for rent only on a "restricted" basis or only if the renter purchased the furniture rose from a pre-war Iow of 10 percent to a wartime high of 90 percent during the period of World War II when rent control effectively created queues of prospective renters.“(1) (p. 21 ) Henderson I 34 Henderson: Unfortunately, they did not report what part of the 10 percent and what part of the 90 percent were in the "restricted" category versus the "furniture" category. Still, the findings in the Chicago newspaper ads were consistent with the idea that rent control had caused the cost of discriminating on racial grounds to fall. Racial discrimination: Black people could not legally compete for apartments by paying more money and so landlords, who, presumably, were disproportionately white, could satisfy their "taste for discrimination" at a much Iower, or even zero, cost. 1. Alchian, Armen A., and Harold Demsetz (1973). The Property Rights Paradigm. Journal of Economic History 33: 16-27. _____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Alchian I Armen A. Alchian William R. Allen Exchange and Production: Competition, Coordination and Control Belmont, CA: Wadsworth 1977 Henderson I David R. Henderson Steven Globerman The Essential UCLA School of Economics Vancouver: Fraser Institute. 2019 |
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