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Do newer tenants pay higher rent?

Author

Listed:
  • Yiwen Chen
  • Paolo Guarda
  • Thomas Y. Mathä
  • Giuseppe Pulina
  • Michael Ziegelmeyer

Abstract

This analysis asks whether newer tenants, who only recently entered the Luxembourg housing market, pay higher rent than tenants with long-standing rental contracts. Using data from the Household Finance and Consumption Survey (HFCS), we find that long-term tenants pay significantly lower rents than “newer” tenants renting comparable accommodation.

Suggested Citation

  • Yiwen Chen & Paolo Guarda & Thomas Y. Mathä & Giuseppe Pulina & Michael Ziegelmeyer, 2021. "Do newer tenants pay higher rent?," BCL Bulletin Analyses, Central Bank of Luxembourg, vol. 2021, pages 77-84.
    • Handle: RePEc:bcl:bclban:bclanalyse20211a1
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    File URL: https://www.bcl.lu/fr/publications/bulletins_bcl/BCLAnalyse/20211A1.pdf
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    References listed on IDEAS

    as
    1. Olsen, Edgar O, 1972. "An Econometric Analysis of Rent Control," Journal of Political Economy, University of Chicago Press, vol. 80(6), pages 1081-1100, Nov.-Dec..
    2. Rebecca Diamond & Tim McQuade & Franklin Qian, 2019. "The Effects of Rent Control Expansion on Tenants, Landlords, and Inequality: Evidence from San Francisco," American Economic Review, American Economic Association, vol. 109(9), pages 3365-3394, September.
    3. Jeremy Bulow & Paul Klemperer, 2012. "Regulated Prices, Rent Seeking, and Consumer Surplus," Journal of Political Economy, University of Chicago Press, vol. 120(1), pages 160-186.
    4. Edward L. Glaeser & Erzo F. P. Luttmer, 2003. "The Misallocation of Housing Under Rent Control," American Economic Review, American Economic Association, vol. 93(4), pages 1027-1046, September.
    5. Gyourko, Joseph & Linneman, Peter, 1989. "Equity and efficiency aspects of rent control: An empirical study of New York City," Journal of Urban Economics, Elsevier, vol. 26(1), pages 54-74, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Households; rent;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance

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