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Should we tax vacant dwellings? A search equilibrium model applied to the rental housing market

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  • Ménard, Sébastien

Abstract

This article examines the effects of a tax on vacant dwellings. I use a search equilibrium model in which the distribution of rent is the result of the owners’ posting strategy. I show that this tax reduces the number of vacant dwellings and increases the average rent.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 117 (2012)
Issue (Month): 1 ()
Pages: 88-90

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Handle: RePEc:eee:ecolet:v:117:y:2012:i:1:p:88-90

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Web page: http://www.elsevier.com/locate/ecolet

Related research

Keywords: Housing market; Rent distribution; Search equilibrium; matching;

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References

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  1. Gabriel DESGRANGES & Étienne WASMER, 2000. "Appariements sur le marché du logement," Annales d'Economie et de Statistique, ENSAE, issue 58, pages 253-287.
  2. Burdett, Kenneth & Mortensen, Dale T, 1998. "Wage Differentials, Employer Size, and Unemployment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(2), pages 257-73, May.
  3. Wheaton, William C, 1990. "Vacancy, Search, and Prices in a Housing Market Matching Model," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1270-92, December.
  4. Rosenthal, Leslie, 1997. "Chain-Formation in the Owner-Occupied Housing Market," Economic Journal, Royal Economic Society, vol. 107(441), pages 475-88, March.
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